MIDC borrowing limit hiked 80x to ₹6,000 crore in Maharashtra Assembly bill
Synopsis
Maharashtra's MIDC hasn't had its borrowing cap revised since 1975 — when the ceiling was set at ₹75 crore. A bill now tabled by Industries Minister Uday Samant proposes an 80-fold jump to ₹6,000 crore, unlocking a HUDCO-backed loan facility to fund land payouts, SEZs, and the Purandar international airport. It is one of the most significant statutory overhauls of Maharashtra's industrial finance architecture in decades.
Key Takeaways
Industries Minister Uday Samant tabled the MIDC borrowing amendment bill in the Maharashtra Legislative Assembly on 24 June .
The bill raises the MIDC's borrowing ceiling from ₹75 crore to ₹6,000 crore — an 80-fold increase.
The ₹75 crore cap had remained unchanged since 1975 , frozen for over half a century.
The expanded limit will unlock a government-backed ₹6,000 crore HUDCO loan facility for the MIDC.
Key drivers include land acquisition costs under the 2013 Land Acquisition Act and projects like the Purandar international airport .
The bill is scheduled for Assembly discussion on Thursday .
Maharashtra Industries Minister Uday Samant on Wednesday, 24 June tabled a bill in the Maharashtra State Legislative Assembly to raise the borrowing ceiling of the Maharashtra Industrial Development Corporation (MIDC) from ₹75 crore to ₹6,000 crore — an 80-fold expansion that officials say is critical to funding the state's next wave of industrial infrastructure. The bill is expected to come up for discussion on Thursday.
A Cap Frozen Since 1975
The ₹75 crore borrowing ceiling was originally fixed in 1975 under Section 22 of the Maharashtra Industrial Development Act, 1961, and had remained unchanged for more than half a century. According to the bill's statement of objects and reasons, this decades-old limit had become a structural bottleneck, severely out of step with modern land acquisition costs, infrastructure scales, and global investment benchmarks.
The proposed amendment empowers the MIDC to raise funds through open markets, commercial banks, and financial institutions up to the new ₹6,000 crore ceiling — unlocking what the government describes as immediate access to capital-intensive project finance.
Why the Hike Is Needed Now
Industries department sources point to skyrocketing land acquisition costs as the primary driver. Under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, the MIDC is legally required to pay substantial compensation packages to displaced landowners and farmers — obligations that the old cap could not adequately support.
Notably, the state is simultaneously pursuing large-scale infrastructure corridors, next-generation Special Economic Zones (SEZs), and flagship connectivity projects. Chief among these is the rapid land acquisition currently underway for the Chhatrapati Sambhaji Raje International Airport in Purandar, which demands significant upfront liquidity.
HUDCO Loan Facility in the Pipeline
With the bill's passage, the MIDC is set to gain access to a government-backed ₹6,000 crore loan facility through the Housing and Urban Development Corporation (HUDCO). Department sources said this financial headroom will help eliminate project delays and ensure faster, friction-free payouts to displaced landowners.
Impact on Maharashtra's Investment Positioning
Officials argue that the expanded leverage capacity will directly strengthen Maharashtra's standing as India's premier destination for foreign direct investment (FDI). The state has been aggressively courting global manufacturers and logistics players, and infrastructure delivery timelines have been cited as a recurring concern by potential investors.
This comes amid a broader national push to accelerate industrial land development, with states competing intensely for large anchor investments in semiconductors, electronics, and green energy. Whether the MIDC can deploy the expanded borrowing headroom efficiently — and without adding to state contingent liabilities — will be closely watched by fiscal analysts and industry bodies alike.
Point of View
000 crore is a genuine infrastructure unlock or a balance-sheet risk dressed up as industrial ambition. Maharashtra's land acquisition obligations under the 2013 Act are real and growing, but channelling that borrowing headroom through a HUDCO facility means the state's contingent liability exposure rises in tandem. The Purandar airport alone has a history of delays and farmer resistance; more capital does not automatically mean faster delivery. Fiscal watchers will want clarity on repayment structures before declaring this a clean win for Maharashtra's investment pitch.
NationPress
24 Jun 2026
Frequently Asked Questions
What is the MIDC borrowing limit bill tabled in Maharashtra?
It is a proposed amendment to the Maharashtra Industrial Development Act, 1961, tabled on 24 June by Industries Minister Uday Samant. The bill raises the MIDC's statutory borrowing ceiling from ₹75 crore to ₹6,000 crore, enabling the corporation to raise funds from open markets, commercial banks, and financial institutions up to the new limit.
Why has Maharashtra's MIDC borrowing cap been raised?
The ₹75 crore cap, set in 1975, had become inadequate to meet modern land acquisition costs, infrastructure project requirements, and compensation mandates under the 2013 Land Acquisition Act. The state's pursuit of SEZs, industrial corridors, and the Purandar international airport requires significantly larger upfront capital.
What is the HUDCO loan facility linked to this bill?
Upon passage of the bill, the MIDC is expected to access a government-backed ₹6,000 crore loan facility from the Housing and Urban Development Corporation (HUDCO). This facility is intended to fund land payouts to displaced farmers and landowners, and to finance new industrial infrastructure projects.
When will the Maharashtra Assembly discuss the MIDC bill?
The bill was tabled on Wednesday, 24 June, and is expected to come up for discussion in the Maharashtra State Legislative Assembly on Thursday, 25 June.
How does this affect Maharashtra's FDI prospects?
Officials argue the expanded borrowing capacity will help eliminate infrastructure delivery delays that have been a recurring concern for potential investors. By enabling faster land acquisition and project execution, the state aims to strengthen its position as India's top foreign direct investment destination.
