From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Sep 18: The Bangalore Metro Rail Corporation Limited (BMRCL) will borrow around Rs 12,000 crore loans from various international banks and investors for completion of the second phase of the Bengaluru’s Namma Metro Rail project.

The second phase of the project will cost Rs 26,400 crore and is expected to be completed in the next five years.

The Central and State Governments are expected to bear 55 per cent of the total cost.

BMRCL and French agency Agence Francaise De Development (AfD) signed an agreement for Rs 1500 crore loan (€200 million) in the presence of Karnataka Chief Minister Siddaramaiah in Bengaluru on Friday.

In the first phase, AfD has lent Rs 800 crore (€110 million) to BMRCL.

BMRCL is holding talks with KfW of Germany and Japan International Cooperation Agency (JICA) to borrow loans, according to BMRCL Managing Director Pradeep Singh Kharola.

While the Phase I of the project is designed to carry one million passengers a day, after phase II added to the network, the ridership is expected to increase three million per day by 2021.

The AfD loan would be utilised to finance the four extension lines, East-West and North-South corridors via Mysuru Road to Kengeri, Byappanahalli to Whitefield, Puttenahalli to Anjanapura, and Nagasandra to Bangalore International Exhibition Centre (BIEC).

AfD’s present loan has a 15-year tenure, which includes five years of moratorium.

The loan facility would be availed either in Indian Rupees or in Euro currency.

If the fully hedged Euro interest rate was lower than the domestic interest rate, then BMRCL would draw the loan in Euro currency as it would be economical, Karola explained.