Representative image show metro rake of the Namma Metro Green Line.
Credit: DH File Photo
Bengaluru: Namma Metro says it has fully secured the approved external loan for Phase 2.
On Friday, the government of India inked an agreement with the German investment bank KfW for a €340-million (Rs 3,044.54 crore) loan.
The agreement was signed by Manisha Sinha, Additional Secretary, Department of Economic Affairs, and Carolin Gassner, Director (South Asia), KfW Germany.
BMRCL Managing Director M Maheshwar Rao signed a separate agreement (project agreement) with Gassner at the KfW office in New Delhi.
BMRCL Director (Finance) S Sivamathan and other senior officials were present on the occasion.
Phase 2, spanning 75.06 km, has approved senior debt of Rs 12,141.14 crore.
Of this, the union government previously secured Rs 9,096.60 crore through the Japan International Cooperation Agency (JICA), Agence Française de Développement (AFD), Asian Infrastructure Investment Bank (AIIB), and European Investment Bank (EIB).
The estimated cost of Phase 2, previously pegged at Rs 30,695 crore, has now been revised up to Rs 40,614.27 crore due to construction delays, higher land requirements, and other reasons.
The additional cost of Rs 9,919.27 crore will mostly be borne by the state government, according to a senior BMRCL official. The Finance Department has approved the revised cost and sent it to the state cabinet for approval.
The cabinet discussed the matter on December 6, but deferred a decision. It has sought additional details and will take it up later.