From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Feb 9: The nodal agency for implementing the Bengaluru Suburban Rail Project, K-RIDE and Luxemburg-based KFW Development Bank inked an MoU on Friday for accommodating funds of Rs. 4561crore (Euro 500 million) for Bengaluru Suburban Rail Project (BSRP).

Manjula, Managing Director, K-RIDE, and Wolf Muth, Country Director, KFW Development Bank, signed and exchanged the documents in the presence of Infrastructure Development Minister M B Patil.

As per the agreement, KFW would provide Rs 4,561 Crore at 4% interest for 20 years.

This is the supplementary agreement between Germany's KFW and KRIDE (Rail Infrastructure Development Company-Karnataka) followed by the primary agreement between the Union Department of Economic Affairs, and KFW for the disbursal of Rs 4561 crore which took place on December 15, 2023.

Speaking on the occasion, Infrastructure Development Minister M B Patil said that the agreement highlights how the project is going to be executed under the loan. It mentions the terms and conditions of the loan towards the project, its repayment schedule, and obligations, he added.

This loan of Rs 4561 crore is aimed at addressing critical infrastructure needs would be utilised for the works of Corridor-3 (Kengeri to Whitefield) Station and Viaduct, Corridor-4 (Heelalige to Rajanukunte) Station work, Depot-1 (Devanahalli), S and T Signal and Telecom), PSD Platform Screen Door), AFC (Automatic Fare Collection), Solar Panel and Security Equipment, MMI (Man Machine Interface), Patil explained.

The government is committed to ensuring transparency and accountability in the utilisation of loan proceeds.

Robust monitoring mechanisms will be in place to track expenditure and ensure that funds are used efficiently to maximize socio-economic benefits for our citizens, the Minister remarked.

The target has been set to complete works in all four corridors completed by December 2027, he said.

He said implementation of BSRP funded by the loan will contribute to better mobility for citizens, reduced vehicular pollution, and the creation of a better environment resulting in improved quality of life in the city of Bengaluru.

BSRP sanctioned through the Ministry of Railways for a project cost Rs 15,767 crore aims to develop a suburban railway network of 148 Km with 58 stations along 4 corridors. The project is funded through the equity contribution from the State Government and Union Ministry of Railways and external borrowing in the ratio of 20:20:60.

Urban Development Department Secretary Rakesh Singh, Swati Khanna, Senior Specialist, KFW, Urban & Mobility, Achim Burkart, Consul General of Germany in Bengaluru, and Kanchi Arora, German Consulate General in Bengaluru were present.