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Bengaluru’s suburban rail project gets Rs 1,350 crore push | Bengaluru News – Times of India

BENGALURU: The Union Budget provided K-RIDE, the special purpose vehicle (SPV) that is executing Bengaluru’s suburban rail project, a shot in the arm on Wednesday. K-RIDE has been allocated a total Rs 1,350 crore. Of this, Rs 450 crore is budgetary support and the remaining Rs 900 crore will come from IEBR (internal and extra budgetary resources).
IEBR constitutes resources raised by PSUs/ SPV through profits, loans and equity. A K-RIDE official said: “In 2022-2023, the state government had given Rs 660 crore for the suburban rail project and the Centre’s share of Rs 450 crore is still pending. We are hoping the amount will be released in a few weeks.”
He said the allocation for the suburban rail was on the expected lines. “We expect a significant allocation in the state budget too. We require funds from foreign financial institutions to float tenders for the remaining two corridors,” he said. The details of allocations made for railway projects in Karnataka/Bengaluru are expected in a day or two once the Pink Book is released.
Pruthvin Reddy, a rail activist, said: “The allocation for suburban rail in the budget is satisfactory. The state government should also allocate adequate funds in its budget to ensure the project is on track.” He said they need additional funds to float the next civil work tender for the Sampige Line (KSR Bengaluru – Yelahanka – Devanahalli).
The Centre and state with fund 20% each of the cost of the project while the rest will come through external loans. Though K-RIDE is in talks with two international financing agencies, Germany-based KfW and Francebased AFD, it is yet to sign an agreement with them.
KRIDE is inducting coaches under lease model to reduce the high upfront procurement cost. The 148km suburban rail project with four corridors was approved by the Centre in October 2020 at cost of Rs 15,767 crore.
But the project gained momentum only in June 2022 after PM Modi laid the foundation stone. While civil work of Mallige Line (Byappanahalli-Chikkabanavara) has commenced, K-RIDE issued a tender notification last week for work between Heelalige and Rajanukunte (Kanaka Line).

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