KfW Bank signs €500 million loan deal with K-RIDE for Bengaluru Suburban Rail Project

Naomi Pandya Posted on: 2024-02-09 17:30:00 Viewer: 3,211 Comments: 0 Country: India City: Bengaluru

KfW Bank signs €500 million loan deal with K-RIDE for Bengaluru Suburban Rail Project

Bengaluru, India (Urban Transport News): In a significant step towards advancing the Bengaluru Suburban Rail Project (BSRP), Dr. M. B. Patil, Hon'ble Minister for Commerce & Industries, Infrastructure, Government of Karnataka, graced the signing ceremony of the Separate Agreement between K-RIDE and KfW Development Bank today. The event, attended by key dignitaries including Rakesh Singh, Additional Chief Secretary, Urban Development Department, and Wolf Muth, Country Director, KfW Development Bank, showcased the collaborative efforts to facilitate a crucial loan for the BSRP.

The Separate Agreement outlines the execution details of the project under the loan, specifying terms and conditions, repayment schedules, and obligations. Serving as a supplementary document, it complements the main loan agreement signed in December 2023 between KfW Development Bank and the Department of Economic Affairs, Ministry of Finance, for a substantial amount of 4561 Crore (Euro 500 million) and a grant of 36.75 Crore (Euro 4.5 million).

This financial infusion is earmarked for Corridor-3 Station & Viaduct, Corridor-4 Station work, Depot-1 (Devanahalli), S&T, PSD, AFC, Solar Panel, and Security Equipment, MMI. The loan addresses critical infrastructure needs, contributing to the comprehensive development of rail infrastructure in Bengaluru.

During the event, Hon'ble Minister Dr. M. B. Patil emphasized the positive impact of BSRP implementation, highlighting improved mobility, reduced vehicular pollution, and an enhanced environment. He emphasized that the collaboration with KfW Bank extends beyond a financial transaction, symbolizing a broader partnership aimed at fostering economic development and growth. The agreement reflects mutual trust and commitment to shared objectives between India and the KfW Development Bank.

The Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE), a Joint Venture Company of the Government of Karnataka and the Ministry of Railways, is spearheading the Bengaluru Suburban Railway Project (BSRP). With a sanctioned completion cost of INR 15,767 crore, the project receives funding through equity contributions from the Government of Karnataka, the Ministry of Railways, and external borrowing from Multilateral/Bilateral Financial Institutions. K-RIDE has successfully partnered with KfW Development Bank (Germany) and the European Investment Bank (EIB) in Luxemburg to secure external funding. The BSRP aims to provide an environment-friendly and cost-effective metro rail-based mass rapid transport system in Bengaluru, addressing the city's growing transportation needs.

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