The Maharashtra Cabinet has approved the Maharashtra State Road Improvement Project, a Rs 12,442 crore programme backed by the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB), to modernise key road corridors across the state.

Under the approved framework, both institutions will provide funding of up to US $1 billion each in two phases.

The first phase of the programme will focus on upgrading approximately 1,500 km of roads and is estimated to cost around US $715 million, equivalent to nearly Rs 6,221 crore.

External funding of US $500 million will be supplemented by a state contribution of US $215 million.

The broader programme, covering both phases, is expected to involve investments of around Rs 12,442 crore for each funding stream and will be executed over a three-year period.

Authorities have identified high-priority "Growth Corridors" for intervention, particularly routes carrying heavy commercial traffic and serving industrial, agricultural and trade centres.

In the initial phase, around 750 km of road works will be undertaken through the Public Works Department using AIIB assistance, while another 750 km will be upgraded through NDB-supported projects.

All works are expected to be awarded through competitive EPC (Engineering, Procurement and Construction) contracts.