SPV to be set up for developing Nagpur cargo hub

Mumbai, Aug 17 (UNI) Maharashtra Cabinet today gave its nod for setting up a special purpose vehicle (SPV) to develop a cargo hub of international standards in Nagpur.

Maharashtra Airport Development Company with 51 per cent equity stake and Airport Authority of India (AAI) with 49 per cent share will be part of the proposed SPV, Chief Minister Vilasrao Deshmukh told reporters after the weekly Cabinet meeting.

The Nagpur airport will be leased to the Company on a rent of rupee per year for a period of 30 years. The Centre will control the airport security and traffic, he added.

The cabinet also approved waiving off interest on loans amounting to Rs 712 crore availed by farmers in the six suicide-troubled districts in Vidarbha.

Accordingly, the State Government will bear a burden of Rs 356 crore and provisions will be made in the 2006-07 State budget, Mr Deshmukh added.

The Cabinet also decided to waive off short-term loans upto Rs 25,000 as per the special package announced by the State Government.

The Government has provided Rs 240.99 crore for the purpose so far.

To waive off interest on short, medium and long-term loans till June 30 this year, the Cabinet approved sanctioning of the remaining Rs 115 crore.

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