The Housing and Urban Development Corporation (HUDCO) has sanctioned a Rs 9,303.66 crore loan to BSMILE for the North-South corridor of Bengaluru’s Twin Tunnel Road project.
The sanction letter specifies that the loan will be guaranteed by the State government. HUDCO has instructed B-SMILE, a Special Purpose Vehicle (SPV), to submit necessary documents and sign a formal agreement before operationalisation. The 16.8 km corridor is estimated to cost Rs 17,780 crore, with B-SMILE responsible for 47.67 percent of the total project cost.
The loan will carry an 8.95 percent interest rate in the first year, post a 0.10 percent rebate, and has a tenure of 24 years and two months (290 months), including a draw period of five years and two months and repayment over 20 years.