India's Maharashtra state has secured funding commitments from lenders for a road project near Mumbai worth Rs 21,500 crore ($2.5 billion).

According to reports, the Maharashtra State Road Development Corporation Ltd., a state government unit, has obtained lenders' commitments for credit lines to fund the construction of the high-end road.

The new road, which is part of an ambitious infrastructure upgrade for the world's densest metropolitan region, is intended to reduce traffic congestion near Mumbai while also improving road quality.

According to reports, the biggest lenders on the deal are India Infrastructure Finance Company Ltd., National Bank for Financing Infrastructure and Development, and Rural Electrification Corporation Ltd. Each of them has committed to lending Rs 10,000 crore, Rs 3,000 crore, and Rs 3,000 crore.

REC acknowledged that it has committed Rs 10,000 crore in term loans to MSRDC in response to inquiries from Bloomberg News. 

Prime Minister Narendra Modi has highlighted infrastructure as a tool for boosting growth. According to Crisil Ratings, the government increased its budget allocation for the agency in charge of roads and highways to Rs 2.78 trillion in fiscal year 2025, more than tripling the amount allocated five years ago.

Credit facilities will be disbursed in stages, and road construction will begin in the next fiscal year, beginning in April. The project was recently looking for bidders to build the "Multi-Modal Corridor."

Other smaller lenders include Punjab National Bank, Bank of India, Bank of Maharashtra, and UCO Bank.