“Karnataka’s Rail Infrastructure Development Company Secures 500 Million Euro Loan from KfW for Bengaluru Suburban Rail Project”
Rail Infrastructure Development Company (Karnataka) Limited, known as K-RIDE, has achieved a significant milestone by finalizing an agreement with KfW, the German Development Bank, to secure a loan of 500 million euros for the Bengaluru suburban rail project.
Additionally, K-RIDE will be granted 4.5 million euros to support the development of two crucial corridors within the Bengaluru Suburban Rail Project (BSRP). These corridors include the Majestic to Devanahalli line, which will connect to Kempegowda International Airport (KIA), and the Kengeri-Whitefield line.
K-RIDE officials have indicated that the funds will be utilized for various aspects of the project, including traction, signaling, overhead power supply, and more. The loan agreement, signed in Delhi, marks a significant step forward in the implementation of the 148-kilometer suburban rail network across four corridors.
While corridor 2, linking Byappanahalli to Chikkabanavara, is already progressing well with the utilization of equity funds provided by the railway ministry and the state government, corridor 4, from Heelalige to Rajankunte, will soon see tenders being floated once the necessary land is obtained from South Western Railway. The loan agreements will facilitate the tendering process for the remaining corridors.
The Bengaluru Suburban Rail Project, estimated to cost Rs 15,767 crore, will receive a loan component of Rs 7,438 crore from multilateral and bilateral institutions. Sources indicate that an agreement with the European Investment Bank for a loan of 300 million euros is expected to be finalized in March.
Key Points:
- K-RIDE secures a 500 million euro loan from KfW for the Bengaluru Suburban Rail Project.
- The loan will support the development of two vital corridors: Majestic to Devanahalli and Kengeri-Whitefield.
- Funds will be utilized for traction, signaling, and other essential aspects of the project.
- Corridor 2 is progressing well, while tenders for corridor 4 will be floated once land acquisition is complete.
- The Bengaluru Suburban Rail Project is estimated to cost Rs 15,767 crore, with significant funding from multilateral and bilateral institutions.
