REC Limited, a central PSU, will extend financial assistance of Rs 3,045 crore to Bangalore Metro Rail Corporation Limited (BMRCL) for the under-construction Phase 2.
The PSU, which comes under the Ministry of Power, took the decision at its board meeting in Bengaluru on June 24, according to a statement.
The BMRCL had sent a proposal in this regard.
REC Limited is an NBFC that focuses on power sector financing and development across India. The financial assistance to BMRCL is part of REC’s foray into funding infrastructure development, the statement said.
In Phase II, Namma Metro is extending its Purple and Green lines and building two new ones — Yellow and Pink lines. These lines will traverse some of the densest and high-traffic areas of the city, according to the statement.
While BMRCL officials didn’t immediately respond to questions about where the money would be spent, it could be used to fund the procurement of new coaches, which have been recently tendered.