NAGPUR, July 10: The Sumo Tumo Bank of Japan has agreed to give a loan of Rs 3,600 crore to the Maharashtra state government for its drinking water and road projects in the state.

The state minister for public works Nitin Gadkari, who returned here after a 10-day tour to Singapore, Malaysia, Australia and Japan, said that a memorandum of understanding (MoU) was signed with the Japanese bank.

He said the bank had agreed to lend money at a nominal interest of 4.5 per cent and added that the sum would be also utilised by the government for various developmental activities like provision of drinking water besides laying of roads.

The state government would provide the necessary guarantee reqiured for the loan, the minister said.

Gadkari, who has initiated many projects involving privatisation of highways, said that the coalition government of right-wing Shiv Sena and the Bharatiya Janata Party government was very keen to accelerate infrastructural development in the state.

Gadkari, who headed a four member delegation to visit foreign countries, said the team had studied new road construction technology and the toll collection system for private roads to be constructed under an ambitious plan.

Gadkari said the state government had identified developmental projects worth Rs 25,000 crore which include four prestigious express highways to be laid at an estimated cost of Rs 12,000 crore.

Giving details of these projects, Gadkari said though the land had been acquired, the Maharashtra government was still awaiting clearance from the ministry of environment and forests at the centre. Work may start any time on the Mumbai-Pune (84 kms), Mumbai-Nasik (150 kms), Mumbai-Ahmedabad (120 kms), Mumbai-Goa (450 kms) express highways, the minister said.

Gadkari said he hoped that the road works costing Rs 600 crore would begin by October this year. They would provide employment to over 60,000 persons directly and indirectly, he added. Strongly advocating the involvement of private sector companies in developmental activities, the state minister said it would result in increased revenue for the state and at the same time reduce the pressure on budgetary liabilities.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.