Bengaluru Suburban Rail: Central Government Approves Rs 1350 Crore, KRIDE Seeks Loan Of Over Rs 7,000 Crore

A total capital outlay of Rs 1,350 crore has been approved for the Bengaluru Suburban Railway Project’s (BSRP) by the Union government.

It includes budgetary allocation of Rs. 450 crore and internal and extra budgetary resources (IEBR) totaling about Rs 900 crore.

K-RIDE (a joint venture between the state government and the Ministry of Railways) is the project's implementing agency.

Additionally, Rail Infrastructure Development Company (Karnataka) Limited (KRIDE) has approached the European Investment Bank (EIB) and the German investment and development bank KfW for a €800 million (Rs 7,140 crore) soft loan for the project,  according to a KRIDE top official. 

German state-owned investment and development bank KfW Bankengruppe is likely to fund €500 million (Rs 4,000 crore).

The loan will cover 60 per cent of the project's costs (excluding rolling stock) and probably will have low single digit interest rates. 

The state and the central government will contribute 20 per cent each.

When the suburban rail project was approved in October 2020,a network of 148 km on four routes in the city was estimated to cost Rs 15,767 crores.

“So far, we have taken assistance from the equity portion of the state and central governments but that won’t be adequate for such a critical project. We approached external funding agencies (EIB and KfW) for funding to the tune of €800 million and are in advanced talks with them. We are optimistic about reaching an agreement by the middle of this year”, said Gaurav Gupta, Managing Director- KRIDE, reports Deccan Herald.

The Rs 1,350 crore given in the Union Budget, according to Gupta, will be adequate for the BSRP in the upcoming financial year.

The state government is expected to announce its share of funding at the  state budget presentation on 17 February.

Bengaluru Suburban Rail Project (BSRP)

The commuter rail network will comprise four corridors, 57 stations, and cover 148.17 km.

Sampige (Corridor 1): KSR Bengaluru – Devanahalli (41 km) connecting Kempegowda International Airport

Mallige (Corridor 2): Baiyappanahalli – Chikkabanavara (25.14 km)

Parijatha (Corridor 3) from Kengeri to Whitefield (35.52 km)

Kanaka (Corridor 4): Heelalige – Rajankunte (46.24 km)

Bengaluru Suburban Rail Project will link Bengaluru to its satellite townships, suburbs, and surrounding rural areas through a rail-based rapid-transit system network.

Current progress of BSRP

The 25.01-km Mallige Line was the first to have construction begin.

On 26 January the civil work tender for the 46.88-kilometer Heelalige-Rajanukunte line was invited.

The Parijata Line and the Sampige Line have not yet been offered for bids.Tenders for civil works on these lines are expected to be issued in April, according to a K-RIDE official.

Tenders for station construction works for Mallige and Kanaka lines will be invited by the end of February.

On 20 June, Prime Minister Narendra Modi laid the foundation for the suburban rail project in the city. He stated that the project would be completed in 40 months.

However, only two of the BSRP's four lines are likely to be completed by the end of 2025.