The Maharashtra government has approved a state guarantee for a Rs 4,800 crore loan to be raised by the Nagpur Metropolitan Region Development Authority (NMRDA) from HUDCO.

The loan will fund land acquisition for the Rs 13,748 crore Outer Ring Road (ORR) project and the development of four truck and bus terminals. This decision, made during the September 3 Cabinet meeting, was formalised through a Government Resolution (GR) issued on October 9 by the finance department. The 148-km-long and 120-mtrs.-wide road will be Nagpur's third ring road, linking the city to major highways, including Samruddhi Mahamarg and routes to Hyderabad, Bhopal, and Jabalpur. Rs 4,800 crore will be used to acquire 1,697.18 hectares across 99 villages in nine talukas.

NMRDA will act as the principal debtor, with loan agreements conforming to formats approved by the law department. The guarantee is valid for 12 months, and repayment security measures include auctioning mortgaged properties before invoking the state’s guarantee.