Date of Post: 28 Nov, 2018
Bangalore: The BMRCL (Bangalore Metro Rail Corporation Ltd) is seeking a loan of worth 500 million USD for the airport metro project, according to a report. The Corporation will also request Rs 500 crore aid from the centre, Deccan Herald reported.
The move comes after a proposal to raise funds through the User Development Fee (UDF) has been put off.
- The BMRCL is seeking the $500 million loan with moderate interest rates, with a long-term loan of upto 20 years, said Ajay Seth Managing Director of the Corporation.
- The formal request of the loan needs to pass through the Union Government.
- The MD said,“We have held a discussion with the Asian Development Bank (ADB). The request is yet to be sent to the Union government.”
- The BMRCL needs funds for the project after the AERA (Airports Economic Regulatory Authority), had blocked the proposal of raising Rs 1,000 crore by using the UDF, ruling that it can be used once after metro services begin.
- As per the new metro policy, the BMRCL will also seek Rs 500 crore from the centre, where the Union government will provide 10% of the cost for a project, raising funds through innovative financing models.
- The state government is expected to pitch in Rs 1,250 crore, and the Centre Rs 500 crore, as per the financial plan approved by the cabinet.
- The alignment of the metro line to the airport is likely to be revised with the BMRCL planning to connect the line at Hebbal instead of Nagavara.
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