Rs 19,000 Crore Loan Sought by BBMP For Bengaluru’s Hebbal-Silk Board Tunnel

The Bruhat Bengaluru Mahanagara Palike (BBMP) has announced that it is seeking Expressions of Interest (EOI) from banks and financial institutions for a loan of Rs 19,000 crore to fund its ambitious 18-km Bengaluru Twin-Tunnel Project. The proposed tunnel will run from Hebbal to Silk Board Junction, aimed at easing traffic congestion, improving mobility, and promoting sustainable growth in the city.

The project, referred to as the "Bengaluru Twin-Tunnel Project," seeks to enhance the city's infrastructure and address long-standing traffic challenges.

The BBMP has invited participation from a wide range of financial entities, including multilateral and bilateral development banks, Indian development financing institutions, as well as public and private sector banks. The participating institutions must be registered with the Reserve Bank of India (RBI) or other relevant authorities and should have a minimum of five years of lending experience.

A BBMP engineer involved in the project explained that banks willing to participate in the EOI process would be supported by the state government's guarantee. Interested institutions are invited to submit their EOIs between December 9 and 19, 2024.

Banks can request the detailed project report (DPR) by submitting a demand draft of Rs 25,000. The loan can be disbursed in installments or as a lump sum, based on BBMP's requirements starting from April 1, 2025, with the funds to be fully utilized by December 31, 2027. The EOI submissions should be in sealed covers and addressed to the Office of the Special Commissioner (Finance), BBMP.

This major infrastructure initiative is expected to contribute significantly to improving traffic flow and fostering economic development across the city.