Karnataka to borrow ₹7,438 crore to fund its share of Bengaluru suburban rail project

Anil Urs Bengaluru | Updated on November 12, 2020

State govt to outsource management of century old MYSugar

Karnataka Cabinet on Thursday approved a borrowing plan for investing ₹7,438 crore as State’s share towards Bengaluru suburban rail project.

The State government is planning to offer land and also borrow to raise its share of funds for the project which is being implemented jointly with the Centre.

JC Madhuswamy, Law and Parliamentary Affairs Minister, told reporters “The Cabinet at its meeting chaired by chief minister B S Yediyurappa has given administrative approval to borrow the money. The money will be raised through a guarantee given to the special purpose vehicle (SPV) which will be created shortly to execute the project.”

As per the detailed project report (DPR) prepared by the Railways, the suburban rail is to have a 148-km network with 57 stations in four corridors - Bengaluru to Devanahalli (41.4 km, 15 stations), Baiyappanahalli to Chikkabanavara (25.01 km, 14 stations), Kengeri to Whitefield (35.52 km, 14 stations) and Heelalige to Rajanakunte (46.24 km, 19 stations).

The Bengaluru Suburban Rail project, is the Lok Sabha election promise for the city, it got featured in the Union Budget 2020.

Union Finance Minister Nirmala Sitaram, in the Budget presented in the Parliament, said “The 148-km long Bengaluru Suburban transport project at a cost of Rs 18,600 crore, would have fares on metro model. The Central government would provide 20 per cent of equity and facilitate external assistance up to 60 per cent of the project cost.”

Mysore Sugar

The Cabinet also decided to outsource the management of Mysore Sugar Company Limited (MYSugar).

Published on November 12, 2020

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