Rail Infrastructure Development Company (Karnataka) Limited, or K-RIDE, said it has inked an agreement with KfW, the German Development Bank, for a loan of 500 million euros.

K-RIDE will also receive a grant of 4.5 million euros which will used to boost the Bengaluru suburban rail project.

The fund will help K-RIDE construct two crucial BSRP corridors — Majestic to Devanahalli line linking KIA, and Kengeri-Whitefield line.

K-RIDE said in a statement that the agreement was signed in the presence of senior officials from the Department of Economic Affairs, Ministry of Finance, Government of India and the Government of Karnataka, and KfW officials.

"The loan was signed for Euro 500 million (Rs 4,552 crore) and a grant of Euro 4.5 million (Rs 41 crore). The signing of this loan agreement will facilitate invitation of Corridor-1, Corridor-3 and system tenders and further expedite progress of BSRP," the statement said.

The flagship Bangalore Suburban Railway Project (BSRP) being implemented by K-RIDE- a Joint Venture Company of the Government of Karnataka and the Ministry of Railways will provide for an environment-friendly and cost-effective metro rail-based mass rapid transport system in the city of Bengaluru.