Has the Maha Cabinet Approved Rs 37,013 Cr for the Virar-Alibaug Motorway and Disbanded MAHA ARC?
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Synopsis
In a pivotal move, the Maharashtra Cabinet has approved a massive funding of Rs 37,013 crore for the Virar-Alibaug motorway project, aiming to boost key industrial connections. Additionally, the decision to dissolve MAHA ARC Limited marks a significant shift in the state's asset management strategy, ensuring efficient governance.
Key Takeaways
- The Maharashtra Cabinet has approved Rs 37,013 crore for the Virar-Alibaug motorway project.
- MAHA ARC Limited will be disbanded due to inactivity.
- The motorway aims to connect key industrial hubs and improve logistics.
- Financial support has been sanctioned for housing projects and educational institutions.
- Judicial infrastructure enhancements have also been approved.
Mumbai, Nov 4 (NationPress) The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, made a significant move to propel the Virar to Alibaug Multipurpose Motorway (VAMMC) project forward by endorsing the acquisition of a Rs 37,013 crore loan from the Housing and Urban Development Corporation (HUDCO), with a government guarantee backing it.
Additionally, the cabinet opted to dissolve the inactive state-run asset reconstruction company, MAHA ARC Limited.
The 126.3-km corridor is designed to connect vital industrial and logistics hubs in Mumbai and its suburbs, such as the Jawaharlal Nehru Port Trust and the forthcoming Navi Mumbai International Airport, with the Mumbai Trans Harbour Sea Link. This project will be executed on a build, operate and transfer (BOT) model after initial tenders under the engineering procurement construction route proved unfeasible.
A comfort clause has been sanctioned to provide repayment security for HUDCO in the event of revenue shortfalls.
In addition, the Cabinet formally ratified the closure of MAHA ARC Limited, which was established in 2022. The Reserve Bank of India had refused its operational license, rendering the continuation of this entity legally impractical.
Furthermore, the Cabinet approved amendments to the Maharashtra Land Revenue Code, 1966, which includes non-agricultural land use permissions and taxation. It also sanctioned an annual financial provision of Rs 7 crore for the Lakshmi Narayan Innovative Technology University in Nagpur, covering the period from 2025-26 to 2029-30.
Housing support was authorized under the Pradhan Mantri Awas Yojana for 30,000 homes designated for unorganised workers in Solapur, with exemptions from unearned income, donation fees, and non-agricultural tax.
Several judicial infrastructure initiatives were approved, including the establishment of District and Additional Sessions Courts in Ghodnadi, Pune district, and a Senior Civil Court in Paithan, Chhatrapati Sambhajinagar district. Necessary positions for judicial officers and staff will be established.
A vital decision regarding health services involved the creation of an Urban Health Commissionerate within the Public Health Department to decentralize urban health services.
Moreover, the Cabinet endorsed the regularization of contractual employees under the National Health Mission who have served for ten years as a one-time measure. Additionally, field workers engaged in Ayushman card distribution will see their remuneration increased, and the treatment list under state and central health insurance programs will be expanded.
Fisheries activities have been placed on equal footing with agriculture for credit assistance, offering a 4 percent interest refund on short-term working capital loans.
Lastly, the Cabinet supported amendments to the proposed Maharashtra Public Trust Ordinance, 2025, and approved staffing for the Punyashloka Ahilyadevi Holkar Government Medical College in Baramati.
Point of View
It's essential to recognize the Maharashtra Cabinet's recent decisions as both a reflection of strategic economic planning and a response to evolving infrastructure needs. The approval of substantial funding for the VAMMC project highlights a commitment to enhancing connectivity and fostering growth. Meanwhile, the closure of MAHA ARC Limited demonstrates a pragmatic approach to asset management. These decisions pave the way for a more sustainable and efficient governance model in Maharashtra.
NationPress
05/11/2025
Frequently Asked Questions
What is the Virar-Alibaug Multipurpose Motorway project?
The Virar-Alibaug Multipurpose Motorway project is a significant infrastructure initiative aimed at linking key industrial and logistics hubs in Mumbai and its suburbs.
How much funding has been approved for the project?
The Maharashtra Cabinet has approved Rs 37,013 crore in funding for the Virar-Alibaug Multipurpose Motorway project.
What is MAHA ARC Limited?
MAHA ARC Limited was a state-run asset reconstruction company that has now been decided to be disbanded due to its inactivity and the refusal of an operational license by the Reserve Bank of India.
What are the key benefits of the motorway project?
The motorway project aims to improve connectivity, boost economic growth, and link vital infrastructure such as the Jawaharlal Nehru Port Trust and the Navi Mumbai International Airport.
What other decisions were made by the Maharashtra Cabinet?
The Cabinet also approved amendments to land revenue codes, housing support for unorganised workers, and the establishment of new judicial infrastructure.
