Housing and Urban Development Corporation (HUDCO) formally issued a letter for the Sanction of B-Sile loans and approved the loan of 9 303.66 GBP for the construction of the first Tunnel Road (North-South) project. HUDCO ordered a vehicle for special purposes (SPV) to provide the required support documents and conclude a formal agreement before the loan.
According to a sanction letter of 4 August 2025, a reviewed Hindu, the loan will be primarily paid out of the guarantee of the State Government. The loan will have an interest rate of 8.95% for the first year, completed after a discount of 0.10%. The loan has a total term of 24 years and 2 months (290 months), which includes a draw period of 4 years and 2 months (50 months) followed by a repayment period of 20 years (240 months). According to the letter, the payment of funds will be carried out in mutually agreed phases.
The letter also stipulates that B-Sile must display the boards at all design sites, especially at places with high visibility, which clearly recognizes the financial assistance of the company HUDCO project.
It is estimated that the north-south corridor, which stretches 16.8 km, is worth 17,780,13 crore. While the government previously stated that the project would be funded by the BUILD-ON-OWT-FERFER (Boot) transmission model, where the concessionaire would transfer 60% of the costs remaining 40% of the government carried, the letters of HUDCO sanctions determine a different financial structure. According to the letter, the B-Sile will be responsible for 47.67% of the project costs, which represents 8,476.47 Crore estimated total costs.
Warranty and requirements
To protect repayment and ensure responsibility, HUDCO ordered B-Sile to submit the government’s converting order to transfer revenues from the ratio of premium flooring (FAR) and revenues from advertising advertising advertising under new statutes throughout the city, “as BBMP” directly to SPV. The B-Sile is also obliged to open the custody account where premium revenues and advertising revenues will be stored solely. “HUDCO will always have the first fee for funds held in this storage account,” he said.
In addition, SPV must provide a commitment from Bruhhat Bengaluru Mahanagar Palike (BBMP, now greater Bengaluru – GBA) providing budget provisions in their accounts for repayment of the loan. The GBA must also issue a commitment that any lack of revenue from Far and advertising in connection with HUDCO’s obligations will be compensated by GBA through alternative income.
“If the Far bonus and advertising revenue are not reasonable to the expected cash flows, the agency will ensure that it provides a government obligation, properly identical financial departments to make a lack of HUDCO loan,” he further states.
The rules and conditions
Hudco also warned that a sanction loan must not be diverted to any other project. SPV is obliged to submit quarterly progress reports while HUDCO will carry out the inspections on the spot before the publication of each installment.
Confirmed development, BS PRAHALLAD, technical director of B-Sile, said Hindu that they had received a penalty letter and the required documents were ready. “After the offer is closed, we will submit documents because certain details of the concessionaire are needed,” he said. He also assured that the project would not deposit a direct financial burden on the public because it was intentionally structured to be financed through premium and advertising income.
The offer of the offer, originally scheduled for closure of September 3, had to be extended until 23 September on the basis of potential applicants for the next time. Almost 11 companies, including several international companies, participated in the meeting before BID, including Indian partners to give you a project.
Published – 4 September 2025 17:46
