Germany's KfW to provide Rs 3,044-crore loan for Bengaluru Metro Phase 2

A project agreement for the said loan was also signed between BMRCL and KfW Germany. Maheshwar Rao, Managing Director, BMRCL, and Carolin Gassner, Director (South Asia), KfW Germany, signed the agreement.

Germany's state-owned developmental bank KfW has decided to provide a loan worth Rs 3,044.54 crore for the Bengaluru Metro's Phase 2.

A loan agreement was signed on December 13 between the Government of India and KfW for €340 million (Rs 3,044.54 crore).

“With the signing of this loan agreement, 100% financial closure has been achieved for the Bangalore Metro Rail Project Phase 2,” stated Bangalore Metro Rail Corporation Limited (BMRCL).

Also, read: Bengaluru Metro's Rs 28,405-crore Hebbal-Sarjapur corridor gets Karnataka govt approval

According to BMRCL, the approved senior debt for Phase 2 stands at Rs 12,141.14 crore. Of this, Rs 9,096.60 crore had already been secured earlier by the Government of India through funding from JICA, AFD, AIIB, and EIB.

"The latest agreement with KfW ensures that the external loan component for Phase 2 is now fully tied up", it said.

Bengaluru Metro's Phase 2, covering a total length of 72 km, was initially projected to cost Rs 26,405 crore in 2014. However, this estimate was revised to Rs 30,695 crore in 2022 and further escalated to Rs 40,614.27 crore in 2024. Despite the original plan to complete the entire 72 km by March 2021, only 34.65 km (48%) of the network has been completed so far.

Also, read: Germany-based KfW Development Bank to fund Bengaluru Suburban Rail Project