Germany-based KfW Development Bank to fund Bengaluru Suburban Rail Project
K-RIDE said in a statement that the agreement was signed in the presence of senior officials from the Department of Economic Affairs, Ministry of Finance, Government of India and the Government of Karnataka, and KfW officials.
The Bengaluru Suburban Railway Project on Saturday got a major thrust when a loan agreement was signed with KfW Development Bank, Germany, by Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) in New Delhi on December 15.
As per the agreement, KfW Development Bank will provide Euro 500 million (Rs 4,552 crore) and a grant of Euro 4.5 million (Rs 41 crore) for the BSRP.
The loan agreement is meant for Corridor-1 from Bengaluru City Railway Station to Devanahalli and Corridor-3 from Kengeri to Whitefield.
K-RIDE said in a statement that the agreement was signed in the presence of senior officials from the Department of Economic Affairs, Ministry of Finance, Government of India and the Government of Karnataka, and KfW officials.
"The loan was signed for Euro 500 million (Rs 4,552 crore) and a grant of Euro 4.5 million (Rs 41 crore). The signing of this loan agreement will facilitate invitation of Corridor-1, Corridor-3 and system tenders and further expedite progress of BSRP," the statement said.
The flagship Bangalore Suburban Railway Project (BSRP) being implemented by K-RIDE- a Joint Venture Company of the Government of Karnataka and the Ministry of Railways will provide for an environment-friendly and cost-effective metro rail-based mass rapid transport system in the city of Bengaluru.
BSRP was sanctioned with a project completion cost of Rs 15,767 crore with a loan component of Rs 7,438 crore (Euro 800 million appx.) from the Multilateral/Bilateral Financial Institutions, K-RIDE said.
A K-RIDE official said the amount will be paid in five years and it will be released in installments in every quarter.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
07:54 PM IST