Corporation Bank has agreed to provide a loan of Rs10bn ($144.31m) for the construction of 340km Purvanchal Expressway in the Indian state of Uttar Pradesh (UP).

The UP state government has already partnered with other public sector banks including Punjab National Bank (PNB) for loans totalling Rs88bn ($1.27bn).

Previously, the state government approved a proposal to borrow Rs10bn ($144.31m) loans each from public sector lenders, Bank of Baroda (BoB) and Vijaya Bank.

After the merger of BoB and Vijaya Bank, the government sought a fresh loan of around Rs20bn ($288.66m) from the combined bank.

The Purvanchal Expressway projected is expected to require an investment of Rs230bn ($3.31bn), which would include funds for land acquisition expenses.

UP Expressway Industrial Development Authority (UPEIDA) CEO Awanish Awasthi told Business Standard that additional loans worth Rs15bn ($216.5m) were in the pipeline.

In order to ensure timely completion, the government has divided expressway project into eight phases. The road is expected to become operational by August next year.

The expressway will connect Eastern UP to the National Capital Region (NCR) through the operational Agra-Lucknow Expressway and Agra-Greater Noida Yamuna Expressway.

In addition, the Purvanchal Expressway will feature an emergency airstrip for Indian Air Force (IAF) jets at Kurebhar (Sultanpur).

The UP government also plans to build Bundelkhand Expressway with an investment of Rs140bn ($2.02bn).

Furthermore, the government will build 600km-long Ganga Expressway to connect Prayagraj (Allahabad) with western UP.

The road will cost Rs360bn ($5.19bn) and pass through 12 districts, including Meerut, Badaun, Shahjahanpur, Amroha, and Bulandshahar.