Maharashtra cabinet has waived Rs 56 crore stamp duty proposed by the revenue department on the loan agreements between the Maharashtra State Road Development Corporation and lenders for the Rs 55,000 crore Mumbai Nagpur Express Way (Samruddhi MahaMarg). FPJ broke the story.
The waiver has been granted to MSRDC as per the provisions in the Maharashtra Stamp Duty Rules and the Registration rules 1908.
MSRDC, which is a nodal agency for the 701 km Samruddhi MahaMarg, in its representation to the government had sought waiver citing that in such loan agreements a maximum of Rs 10 lakh stamp duty is charged. The government accepted MSRDC's argument and wrote off the stamp duty and registration fee.
The revenue department had proposed the imposition of stamp duty and registration charges of Rs 56 crore on loan agreement, facility agreement, common loan agreement, deed of hypothecation, agreement of pledge, deeds of undertaking and assignment, escrow agreement, sponsor support undertaking singed by MSRDC with lenders for the Rs 28,000 crore loan for Samruddhi Marg.
Maharashtra cabinet on Wednesday gave a nod to provide share capital of Rs 3,500 crore to MSRDC to finance the Samruddhi MahaMarg. Of the Rs 28,000 crore loan, MSRDC has tied up Rs 24,500 crore at the 9.75% rate of interest. However, for the balance Rs 3,500 crore, LIC was charging a 10.2% rate of interest.
Therefore, MSRDC had sought Rs 3,500 crore from the state government in the form of share capital in a bid to reduce debt at a higher interest rate. Further, the state cabinet has agreed to give an additional share capital of Rs 5,000 crore if required in the future.
The Mumbai-Nagpur Express Way (Samruddhi MahaMarg), started by the previous BJP-led government, will be named after Shiv Sena founder Bal Thackeray. The Shiv Sena minister Eknath Shinde gave a proposal which was approved by the state cabinet.
The Mumbai-Nagpur Super Communication Expressway, also known as Maharashtra Samruddhi Mahamarg, is an under-construction 701km long, eight-lane corridor connecting the two key cities of Maharashtra.
Nagpur, located in eastern Maharashtra, is the second capital of the state and biggest city of the Vidarbha region. So far 22% construction is completed and the project is likely to be commissioned by December 2021.
