Central government-owned REC has decided to extend financial assistance of Rs. 3,045 crores to Bangalore Metro Rail Corporation Limited (BMRCL) for the development of metro lines under the Phase-II project of Bangalore Metro.
The decision was approved at REC’s board meeting held in Bengaluru on Saturday, according to information provided by the Ministry of Power which exercises administrative control over the financial company.
The Phase-II project of Namma Metro comprises extension of the existing East–West Corridor and North–South Corridor of Phase-I; and two new lines: One from R.V. Road to Bommasandra and the second from Kalena Agrahara to Nagawara. These lines will traverse some of the densest and high-traffic areas of Bengaluru.
Phase-II of the project will enhance connectivity and ease traffic congestion which is becoming a nightmare in the densely populated city. With the completion of Phase-II (72.09 km), the combined network of Namma Metro will extend to 114.39 km, with 101 stations. The project is also a major environment friendly addition to Bengaluru as it significantly contributes to the reduction of carbon emissions.
Bangalore Metro Rail Corporation Limited (BMRCL), a joint venture of Government of India and Government of Karnataka is a Special Purpose Vehicle entrusted with the responsibility of implementation of Bangalore Metro Rail Project.
REC Limited is an NBFC (Non-banking financial company) focusing on power sector financing and development across India. The financial assistance to BMRCL forms part of the Maharatna company’s foray into funding infrastructure development.
REC provides financial assistance to the complete power sector value chain that includes projects related to Generation, Transmission, Distribution and Renewable Energy. REC’s funding illuminates every fourth bulb in India.
“Maharatna” status is granted to a company which has recorded more than Rs. 5,000 crores of net profit for three consecutive years, an average annual turnover of Rs. 25,000 crore for three years or should have an average annual net worth of Rs. 15,000 crore for three years