The Housing and Urban Development Corporation (HUDCO) has approved a loan amounting to Rs 9,303.66 crore to BSMILE for the North-South corridor of Bengaluru’s Twin Tunnel Road project.
The sanction letter indicates that the loan will be backed by the State government. HUDCO has directed B-SMILE, a Special Purpose Vehicle (SPV), to provide the required documents and enter into a formal agreement prior to the commencement of operations.
The 16.8 km corridor is projected to cost Rs 17,780 crore, with B-SMILE accountable for 47.67 percent of the overall project expenditure. The loan will bear an interest rate of 8.95 percent in the first year, following a 0.10 percent discount, and has a duration of 24 years and two months (290 months), which includes a draw period of five years and two months and a repayment period of 20 years.
