Bengaluru, Nov 12 : The Karnataka government would borrow Rs 7,438 crore to fund the 148km suburban rail project across Bengaluru, state law and parliamentary affairs minister J.C. Madhuswamy said on Thursday.
“The state cabinet has approved the proposal to borrow the amount through a special purpose vehicle (SPV) as part of the state’s share in the Rs 18,600-crore suburban rail project across the city, being implemented jointly with the Indian Railways,” Madhuswamy told reporters here.
The state government and the Ministry of Railways will guarantee the loan to be shared equally by them.
“The central and state governments will also contribute Rs 2,479 crore respectively to the mega project, which will ease vehicular pressure on city roads and meet the need for alternative transport,” said Madhuswamy.
The project will have four corridors, connecting Bengaluru with Devanahalli near the international airport (41.4km and 15 stations), Baiyappanahalli with Chikkabanavara (25km and 14 stations), Kengeri with Whitefield (35.52km and 14 stations) and Heelalige with Rajanakunte (46.24km and 19 stations).
The Union Cabinet on October 7 had approved the suburban rail project, which has been pending over the years to provide an efficient commuting network to the burgeoning tech city of 1.3-crore denizens.
“The Railways will contribute 20 per cent of the equity and guarantee external borrowing up to 60 per cent of the project cost, while the state government will share the remaining 20 per cent equity,” an official told IANS here.
The suburban rail project is scheduled to be completed by 2025 and become operational from 2026.
“The suburban rail service, the metro rail service and the state-run bus service will be integrated to provide a seamless mobility for the people in and around the city,” the minister added.
Disclaimer: This story is auto-generated from IANS service.