India News | Germany-based KfW Development Bank to Fund Bengaluru Suburban Rail Project
Get latest articles and stories on India at LatestLY. 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.
Bengaluru, Dec 16 (PTI) 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.
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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.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)