Maharashtra cabinet approves proposal to increase MIDC’s loan-raising power

Mumbai: The Maharashtra Industrial Development Corporation (MIDC) will soon be able to raise loans of larger amounts. The state cabinet on Tuesday approved a proposal to amend the MIDC Act, 1961, to increase its loan-raising powers. Rather than a single fixed cap, MIDC’s borrowing limit is determined by its outstanding liabilities, capitalisation needs and specific state govt-backed guarantee approvals. MIDC can raise funds by issuing bonds, debentures or obtaining loans from the state govt, commercial banks and financial institutions.According to a govt press release, the MIDC has been given approval and govt guarantee to take a loan of Rs 6,000 crore from HUDCO for the acquisition of Purandar Airport land. Currently, the process of land acquisition for Purandar Airport is going on rapidly. Also, a large amount of land is being acquired in the state for the development of various industrial areas, special economic zones and necessary infrastructure. In this, the corporation will need additional financial resources to provide appropriate compensation to farmers; and for the development of new industrial projects and infrastructure. In this regard, approval was given to amend the provisions of this Act to increase the current limit of borrowing by the corporation, said a press release.