Germany's state owned investment and development bank KfW is set to sign an agreement with Bengaluru Metro Rail Corporation Ltd (BMRCL) to provide €500 million (around ₹4,500 crore). As per Mint, this fund will be used for the expansion of Bengaluru Metro.
KfW’s India director Wolf Muth in an interview to Mint confirmed that the funding would be used to construct new lines for the Bengaluru Metro, also called Namma Metro.
“We bring in a lot of capacity and expertise with respect to environmental and social aspects. So, we have high standards and these are things which have to be adapted in the project execution," Muth told Mint.
The funding involves loans and grants which will also be used to provide technical expertise to the metro project. The bank is looking to expand its funding for green energy and sustainable mobility projects in India and is also financing metro projects in Mumbai and Nagpur among other cities.
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The bank has previously provided funds to Nagpur and Mumbai for the expansion of metro lines. In 2016, it provided a €500 million loan to the Indian government for the construction of a modern and sustainable metro system in Nagpur and in 2020 it provided €545 million loan for the expansion of Mumbai metro.
Apart from this, Germany has also committed to provide at least €10 billion in assistance to India for its green and sustainable development ambitions with KfW providing an estimated €1 billion annually for funding in India.