M'rashtra mulls Rs.1 Lakh-cr infra SPV

In order to inject a major push to the sector, the Maharashtra government has drawn up detailed plans to set up a special purpose vehicle (SPV), Mahainfra, will raise about Rs. 1 lakh-cr for financing infrastructure projects across the state, State Finance Minister Sudhir Mungantiwar said recently, claiming that the funds would be generated in the next five years for infrastructure development. Given the constraints in raising such huge amounts, alternative methods, including tapping international funds, would be used. As a matter of fact, the Mahainfra is proposed to act as a single window for aggregating the land held by various departments for securitization, which are neither in use nor expected to be developed by the holding department for the next 10 years. The land will be escrowed to the SPV for generation of funds and securitization of the land will aid in raising funds through low-cost loans, bonds, and investments from large investors with long-term horizons such as national or international pension and insurance funds, he said.