MoU Signed For Rs 4,561 Cr Loan to Bengaluru Suburban Rail Project
Bengaluru: Rail Infrastructure Development Company-Karnataka (K-RIDE), the nodal agency for implementing the Bengaluru Suburban Rail Project, and Germany-based KFW Development Bank entered into a Memorandum of Understanding (MoU) on Friday in Bengaluru for funding of Rs 4,561 crore (500 million euros). As per the agreement entered, KFW will provide a loan of Rs 4,561 crore at 4 percent interest for 20 years.
Managing Director of K-RIDE Manjula and Country Director, KFW Development Bank Wolf Muth signed and exchanged the documents in the presence of Minister for Infrastructure Development M.B. Patil. The agreement between K-RIDE and KFW was a supplementary agreement while the primary agreement between the Department of Economic Affairs, Government of India, and KFW for disbursal of Rs 4,561 crore took place on December 15, 2023.
The Bengaluru Suburban Rail Project was sanctioned through the Ministry of Railways and the project would cost Rs 15, 767 crore. The project is aimed at developing a suburban railway network of 148 km with 58 stations along four corridors. The suburban rail project is funded through equity contributions of the Government of Karnataka, the Ministry of Railways, and external borrowings in the ratio of 20:20:60.
After the MoU was signed, by Minister for Infrastructure Development M.B. Patil the loan from KFW is aimed at addressing critical infrastructure needs and expressed confidence that the works on all four corridors would be completed by 2027.
Patil stated that the Bengaluru Suburban Rail Project will contribute to better mobility for citizens, reduce vehicular pollution, and create a better environment resulting in improved quality of life for Bengaluru residents.
The government is committed to ensuring transparency and accountability in the utilization of loans, said Patil, and stated that robust mechanisms will be in place to track expenditure and ensure that funds are used efficiently to maximize socio-economic benefits for our citizens.
Consul General of Germany in Bengaluru Akin Zorlutuna and Additional Secretary of the Urban Development Department Rakesh Singh among others were present.
