Rail Infrastructure Development Company (Karnataka) Limited, or K-RIDE, said it has inked an agreement with KfW, the German Development Bank, for a loan of 500 million euros. K-RIDE will also receive a grant of 4.5 million euros.
The fund will help K-RIDE construct two crucial BSRP corridors — Majestic to Devanahalli line linking KIA, and Kengeri-Whitefield line.
“For two corridors — Byappanahalli to Chikkabanavara (corridor 2) and Heelalige to Rajankunte (corridor 4) — K-RIDE is utilising equity funds provided by the railway ministry and the state government. Construction work of corridor 2 is progressing well. Once we receive the required land from South Western Railway, tenders will be floated for corridor 4. To float tenders for the other two corridors, the loan agreements will help. K-RIDE will also utilise these funds for traction, signalling, overhead power supply and others,” an official said.
The agreement was signed in Delhi on Friday, said officials of K-RIDE, which is tasked with implementation of the148-km suburban rail network on four corridors.
The BSRP is estimated to cost Rs 15,767 crore with a loan component of Rs 7,438 crore (800 million euros approximately) from multilateral and bilateral institutions. Sources said in March, K-RIDE will reach an agreement with European Investment Bank to raise 300 million euros.