Buoyed by the overwhelming response to the Rs 500 crore bond issue, Gadkari said that ``I have faith in investors who will put their money in this issue also.'' He said that the Rs 500 crore bond issue was oversubscribed and the MSRDC was able to garner Rs 1,200 crore. ``This was possible mainly due to inherent strength of the economic viability for road projects in the state and the performance of the MSRDC,'' he said. MSRDC has already made provision for repayment in 1998 and 1999. Repayment will begin from September 1998.

Gadkari said that the necessary formalities are being carried out to float the proposed bondissue and added the money raised through this will be used to carry out construction of Mumbai-Nashik, Mumbai-Goa expressways and other road projects.

He said that the work on the 84-km Mumbai-Pune expressway was on schedule and would be opened to traffic from January 26, 2000. Massive tree plantations involving local villagers will be carried out on both the sides of the expressway.

On the 160-km Mumbai-Nashik expressway, Gadkari said that the designs were being prepared. He added that the project would be completed in two phases. In the first, an investment of Rs 1,100 crore would be needed to construct two lanes each and in the second phase, two more lanes each will be expanded.

Gadkari said that his department had also surveyed the state highways and have selected road length of 3,000 km which needs to be upgraded on priority basis to 2-lane. Several bridges will be upgraded in view of the increased traffic. Gadkari said that 50 flyovers with an investment of Rs 1,500 crore in Greater Mumbai will becompleted by December 1999 and added that work on 25 have already begun. Work on another seven projects will begin soon, he added.

``The total private-public investments in this sector will go up to Rs 10,000 crore by December 1998 and it will cross Rs 25,000 crore in next two years,'' Gadkari said and added that finance and other incentives had been offered to encourage private participation in the road sector.

MSRDC managing director RC Sinha said that it will seek term loan from banks for the implementation of Rs 70 crore 18-km Thane-Ghodbunder flyover. He said that he had already held taks with IDBI, Indian Overseas Bank, Indian Bank, Punjab National Bank, ANZ Grindlays and Canara Bank.