Maharashtra Approves Rs 3,000 Crore Guarantee For Nagpur IBFC Land Acquisition Plan

Maharashtra has approved a state guarantee of ₹3,000 crore to support the first phase of land acquisition for Nagpur’s upcoming International Business and Finance Centre (IBFC), marking a crucial step in developing the region as a major economic hub in central India. The guarantee will help the Nagpur Metropolitan Region Development Authority (NMRDA) secure borrowing from the central public finance institution HUDCO, forming part of a wider proposal to raise ₹6,500 crore for the ‘New Nagpur’ growth corridor.

According to officials, the guaranteed amount will remain valid for 12 months and is tied specifically to land procurement across nearly 692 hectares in the villages of Godhani (Khurd) and Ladgaon (Khurd) in Hingna tehsil. These areas have been earmarked for large-scale commercial, business and financial activities intended to anchor the IBFC and catalyse long-term employment and investment within the Vidarbha region. The Government Resolution issued by the state finance department places strict compliance obligations on NMRDA, which will serve as the principal debtor. The directive clarifies that the state will not assume responsibility for delays, penalties or repayment defaults. Instead, NMRDA must mortgage select movable and immovable assets to HUDCO, which may be liquidated in case of non-payment before the state guarantee can be invoked. Senior officials emphasised that the arrangement ensures fiscal discipline while also enabling the authority to unlock the land needed for early project stages.

To maintain financial transparency, NMRDA is required to submit monthly updates on repayment progress along with detailed financial health reports every six months to the urban development and finance departments. A guarantee fee of ₹0.50 per ₹100 of outstanding borrowing will apply, payable twice a year. Delayed payments will attract steep penal interest rates, beginning at 16% and rising to 24% after three months. Any sale of mortgaged assets must be cleared by a committee comprising state-level representatives, ensuring robust oversight of public resources. Urban planners note that the IBFC has the potential to reposition Nagpur as a competitive business node by leveraging its geographic centrality, multi-modal connectivity and lower land costs. Experts add that such developments must integrate sustainability frameworks from the outset, including climate-resilient infrastructure, low-carbon mobility networks and socially inclusive land-use planning. If executed with these considerations, the project could support balanced regional development while reducing pressure on Mumbai and Pune.

The initiative is also seen as an opportunity to build a modern financial district rooted in equitable urban design, where commercial growth is matched by accessible public spaces, efficient transport links and transparent development norms. While several regulatory approvals and subsequent land pooling processes remain pending, the financing clearance signals the state’s intent to accelerate the project’s foundations. For residents and businesses in the wider region, the IBFC could shape a cleaner, more diversified urban economy over the next decade.

Maharashtra Approves Rs 3,000 Crore Guarantee For Nagpur IBFC Land Acquisition Plan