Namma Metro Secures €340 Million Loan for Phase 2 Expansion
Namma Metro has successfully secured the full external loan for Phase 2, including a €340 million loan from KfW Germany.
image for illustrative purpose
On Friday, the Indian government signed a €340 million (Rs 3,044.54 crore) loan agreement with the German investment bank KfW.
The agreement was signed by Manisha Sinha, Additional Secretary, Department of Economic Affairs, and Carolin Gassner, Director (South Asia) at KfW Germany. BMRCL Managing Director M Maheshwar Rao also signed a separate project agreement with Gassner at KfW's New Delhi office.
Phase 2, which covers 75.06 km, has an approved senior debt of Rs 12,141.14 crore. The union government has already secured Rs 9,096.60 crore through various international lenders such as JICA, AFD, AIIB, and EIB.
The estimated cost of Phase 2 has been revised from Rs 30,695 crore to Rs 40,614.27 crore due to delays, higher land requirements, and other factors. The additional Rs 9,919.27 crore will mostly be covered by the state government.
The Finance Department has approved the revised cost, which is now awaiting approval from the state cabinet. Although the cabinet discussed the matter on December 6, it deferred the decision to gather more details.
