Minister MB Patil, K-RIDE Managing Director Manjula N and others with representatives of the European Investment Bank (EIB) in Bengaluru recently.
Credit: K-RIDE
Bengaluru: Authorities have secured the entire external funding for the Bengaluru Suburban Railway Project (BSRP), sparking hopes of expediting the long-delayed project.
Railway Infrastructure Development Company (Karnataka), K-RIDE, has secured Rs 7,438 crore (approximately €800 million) in foreign funding for the 149-km BSRP that will leverage Bengaluru’s vast railway network for intracity commute.
On June 14, 2024, the Ministry of Finance’s Department of Economic Affairs signed an MoU with the European Investment Bank (EIB) for a €300 million loan for the BSRP. The agreement was signed in the presence of DEA officials and EIB representatives in New Delhi, K-RIDE stated.
According to K-RIDE, the agreement will facilitate tenders for Corridor 1, Depot 2, track and traction works, besides expediting the entire project.
In December 2023, a similar MoU was signed by the German investment bank KfW for a €500 million loan.
Well-placed sources in K-RIDE indicated that KfW and the EIB would release the funds against bills raised, as per the standard practice.
The €800 million loan accounts for 60% of the total project cost of Rs 15,767 crore. The union and state governments are contributing the remaining 40%.
The BSRP has four corridors and two depots. Groundwork has begun only on Corridor 2 (Mallige Line, 25.57 km), which runs from Benniganahalli to Chikkabanavar.
K-RIDE has also awarded the civil work contract for Corridor 4 (Kanaka Line, 46.88 km), which will connect Heelalige to Rajanukunte. Full-fledged groundwork is expected to begin shortly.
K-RIDE has begun pre-construction works for Corridor 1 (Sampige Line, 41.4 km), which will link Majestic with Devanahalli with a branch line to the Kempegowda International Airport.
Initial groundwork is also underway on Corridor 3 (Kengeri-Whitefield, 35.52 km) while K-RIDE is evaluating the financial bids to lease 306 coaches.
In addition, the agency recently invited tenders for the construction of eight stations (Benniganahalli, Kasturi Nagar, Seva Nagar, Banaswadi, Nagavara, Kanaka Nagar, Hebbal, and Mathikere) on the Mallige Line.
The BSRP is unlikely to meet the October 2025 deadline set by Prime Minister Narendra Modi. The Karnataka government is hopeful that the project will be ready by 2028.
FUNDING Break-up
Total cost: Rs 15767 cr
State govt & Centre: Rs 2479 cr each
Foreign agencies: Rs 7438 cr (€800 mn)
KfW: €500 mn EIB: €300 mn