NMRDA begins hiring transaction advisers for Naya Nagpur international business and finance centre

The Nagpur Metropolitan Region Development Authority (NMRDA) has begun the process of appointing transaction advisers for the International Business and Finance Centre (IBFC) of Chief Minister Devendra Fadnavis's ambitious 'Naya Nagpur' project. The experts will prepare the financial, legal and commercial blueprint for the greenfield project.

In the first phase, Naya Nagpur is planned on about 1,710 acres at Godhani (Rithi) and Ladgaon (Rithi) in Hingna tehsil. The preparation comes at a time when farmers are protesting against the land acquisition.

The advisers will assess the project's development vision and market demand. A clear vision statement and a unique value proposition will also be prepared for the project. They will also build a detailed financial model assessing the total cost of the project, likely revenue and cash flow.

A framework for institutional governance and for coordination among the various agencies will also be created to run the project. Keeping in view the needs of global investors, an outline for compliance with environmental, social and governance (ESG) standards will be drawn up.

The IBFC is planned to promote activities such as IT, ITES, global capability centres (GCC), data centres, corporate offices and financial services. For this, the transaction advisers will study the real market demand in each segment.

They will speak to domestic and foreign investors to understand their needs and investment prospects. Sources of funds such as banks, development finance institutions (DFI) and equity will also be assessed. A strategy for financial closure and raising revenue will be built on this basis.

A programme for infrastructure development and investment across the different phases of the project will also be drawn up. It covers facilities such as a district cooling system, automated waste collection, smart water and sewerage networks, power distribution and an ICT fibre network. Separate business models and cost recovery arrangements will also be made for these services so that they can be run sustainably.

According to NMRDA figures, development is proposed on a total of about 1,710 acres in the first phase. According to available information, more than 195 plots have been registered and compensation of Rs 2,236 crore has been distributed. Amid the farmers' protest, the authority is now trying to build a clear roadmap for investment and development.