The Karnataka Cabinet has approved a borrowing plan for investing Rs 7,438 crore as the state’s share towards the 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.

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 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 148 km long Bengaluru Suburban Rail project at a cost of Rs 18,600 crore will have fares on Metro model. The Central government will provide 20 percent of equity and facilitate external assistance up to 60 percent of the project cost.