Nagpur-Goa Shaktipeeth Expressway: Ajit Pawar-led Finance Dept Raises Alarm Over ₹20,787 Cr Loan Citing Massive Burden On State

Mumbai: The Maharashtra cabinet’s decision to extend a Rs 20,787-crore loan guarantee for land acquisition linked to the ambitious Nagpur-Goa Shaktipeeth Expressway has drawn sharp criticism from the state’s Finance Department, led by Maharashtra Deputy Chief Minister Ajit Pawar. In a cautionary note submitted ahead of the cabinet's approval on Tuesday, the department warned that the off-budget borrowing could significantly strain the state's finances and limit its capacity to raise future loans.

According to a report by the Indian Express, the Finance Department flagged concerns over the cost of borrowing at higher interest rates and urged the government to reassess its Build-Operate-Transfer (BOT) model for large infrastructure projects. It suggested prioritising developments based on available financial resources rather than committing to extensive new liabilities.

Maharashtra Clears ₹20,000 Crore For Shaktipeeth Expressway Amid Fierce Farmer Opposition

Maharashtra Under Huge Financial Burden

According to the department's estimates, by March 2026, Maharashtra's total debt burden is projected to hit Rs 9.32 lakh crore. For the financial year 2025-26 alone, Rs 1.54 lakh crore will be needed to service this debt. Already, about 22 per cent of the state’s committed expenditure is being consumed by interest and loan repayments.

The note also pointed out that the Maharashtra State Road Development Corporation (MSRDC), which will implement the expressway, has already taken loans amounting to Rs 24,190 crore, which the state has guaranteed. The Shaktipeeth Expressway loan is separate from this and will add a major financial obligation not covered under the current budget provisions.

Despite financial concerns, the Mahayuti government has moved ahead with the expressway project. Sanctioned on Tuesday, the 802.5-km Nagpur-Goa corridor will run from Pavnar in Wardha to Patradevi near the Goa border in Sindhudurg. The route will traverse 12 districts including Yavatmal, Nanded, Beed, Solapur, Sangli and Kolhapur, cutting travel time between Nagpur and Goa from 18 hours to just 8.

Apart from improving connectivity, the project aims to promote religious tourism by linking prominent pilgrimage destinations such as Tuljapur, Kolhapur, Mahur, Ambajogai, Pandharpur and Parli Vaijnath.

Shaktipeeth Highway: 10,000 Farmers To March To Vidhan Bhavan Against ₹86,000 Crore Project

Strong Opposition From Farmers

However, the project faces fierce resistance from farmers, particularly in the Kolhapur and Sangli districts. At the cabinet meeting, ministers Prakash Abitkar and Hasan Mushrif raised concerns about forced land acquisition and its political fallout. With local body and municipal elections approaching, sources suggest the government has been urged to avoid escalating tensions with farmers who are refusing to part with their land.