BMRCL seeks $500 m loan for air­port Metro

Evening Today - - BENGALURU -

The air­port metro project is set to gain mo­men­tum with the Ban­ga­lore Metro Rail Cor­po­ra­tion Lim­ited (BMRCL) seek­ing a loan worth 500 mil­lion USD. The BMRCL will also re­quest Rs 500 crore as aid from the Cen­tre. The move comes af­ter a pro­posal to raise funds through the User De­vel­op­ment Fee (UDF) has been put off.

Man­ag­ing Di­rec­tor Ajay Seth said the cor­po­ra­tion is look­ing for the $500 mil­lion, ideally in a long-term loan of up to 20 years with a mod­er­ate in­ter­est rate. The for­mal re­quest for a loan has to go through the Union gov­ern­ment. “We have held a dis­cus­sion with the Asian De­vel­op­ment Bank (ADB). The re­quest is yet to be sent to the Union gov­ern­ment,” he said.

The BMRCL is try­ing to shore up funds for the project af­ter the Air­ports Eco­nomic Reg­u­la­tory Au­thor­ity (AERA) in June blocked a pro­posal to raise Rs 1,000 crore through UDF. As per the AERA rul­ing, ad­di­tional UDF can be levied af­ter the metro ser­vices be­gin.

The cor­po­ra­tion will also seek Rs 500 crore from the Cen­tre as per the new metro pol­icy, where the Union gov­ern­ment will pro­vide 10% of the cost for a project, rais­ing funds through in­no­va­tive fi­nanc­ing mod­els.

As per the fi­nan­cial plan ap­proved by the cab­i­net, the state gov­ern­ment is ex­pected to pitch in Rs 1,250 crore, and the Cen­tre, Rs 500 crore (8.40% of the project’s cost).

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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