The Centre has allocated Rs 800 crore as equity infusion from the Railway Board to a joint venture company to be set up with the Karnataka Government to implement Bengaluru Suburban Rail Project, Railway Minister Piyush Goyal informed Lok Sabha on Wednesday.
Replying to BJP MP Shobha Karandlaje's question, the minister said, ”During the year 2021-22, a Budget grant of Rs 800 crore has been kept for equity infusion into Joint Venture with State Government. Budgetary requirement of Bangalore Suburban Railway Project will be released from it, based on requirement.”
The Minister also said that a sum of Rs 1 crore has been earmarked by Railway Board for the year 2020-21.
The Centre in October last year approved Rs 19,000 crore Suburban Rail Project for IT city. As per the proposal, a special purpose vehicle will be formed to implement the project. In the special purpose vehicle, the Centre will have 20 % of the equity in the project and facilitate external financial assistance of up to 60% of the project cost.
The Karnataka Government will have to share the remaining 20% equity.
Published 24 March 2021, 17:11 IST
