Bangalore Metro Rail Corporation Limited (BMRCL), the special purpose vehicle implementing the Metro rail project in the city, is set to raise up to 500 million euro (about Rs 3,800 crore) from the German development bank, KfW.
The money will be used to fund the second phase of Metro project in Bengaluru, for which the corporation has commenced preliminary works recently.
“We are in discussions with KfW to raise between 250 million euros and 500 million euros to fund the second phase. We hope to close the deal before end of this year,” U A Vasanth Rao, general manager (finance), BMRCL, told FE.
Total cost of phase 2 of Bangalore Metro is estimated at Rs 26,450 crore, of which 55% is equity contribution from both state and central governments.
The BMRCL intends to raise the balance 45% from various sources that include domestic and overseas funding agencies, he said. Rao said the corporation has already raised 110 million euro from the French lender Agence Française de Développement (AFD). Even for the Phase-1, AfD had lent Rs 800 crore to BMRCL.
