Karnataka to borrow Rs 7,438 crore for Bengaluru suburban rail

The state cabinet on Thursday gave administrative approval for borrowing Rs 7,438 crore for the Bengaluru suburban rail project being implemented jointly by the Centre and Karnataka.

The money will be borrowed by a special purpose vehicle (SPV) that has been set up to implement the project, Law Minister J C Madhuswamy told reporters.

While the Centre and Karnataka will contribute 20% each (Rs 2,479 crore), 60% of the cost, or Rs 7,438 crore, will be borrowed from lending agencies through the SPV.

The long-delayed suburban rail project will have four corridors — KSR Bengaluru (Majestic) to Devanahalli (41.4 km and 15 stations), Baiyappanahalli to Chikkabanavara (25.01 km and 14 stations), Kengeri to Whitefield (35.52 km and 14 stations) and Heelalige to Rajanakunte (46.24 km and 19 stations). Its total length will be 148.17 km.

While the government had estimated the completion cost at Rs 18,621 crore, it later reduced the same to Rs 15,767 crore after adapting the public-private partnership model.

The loan guarantee for the borrowings under the SPV for the project will be shared equally by the state government and the railways, according to sources.

The cabinet also approved implementing a women’s safety system in buses with the Nirbhaya funds, which will include an in-bus surveillance system.

Madhuswamy said that the Ministry of Women and Child Development had approved an action plan of Rs 56.07 crore for implementing nine projects under Nirbhaya scheme.

Installation of CCTV surveillance cameras for 5,000 buses, a mobile application to improve the functionalities on women’s safety and implementing passenger information display in bus stops are some of the projects. Rs 40.92 crore is the total cost of the three projects that will be implemented in BMTC buses.

Other decisions

The Cabinet also decided to charge only 50% of the interest accrued for non-payment or delayed payment of lease amount to organisations that come forward to clear the outstanding balance of civic amenity sites leased by the Bangalore Development Authority (BDA). It also set aside Rs 155 crore for development works on the Bengaluru Central University campus and Rs 48 crore for a building of the Karnataka Institute of Endocrinology and Research.

The cabinet also approved the installation of a CNG unit at the Mavallipura solid waste management centre. Also, the BBMP will develop 12 high traffic density corridors in Bengaluru, not the Karnataka Road Development Corporation Ltd.