BMRCL Faces Rs 700 Crore Extra Loan Burden for Unfinished Airport Metro Line

The Bangalore Metro Rail Corporation Limited (BMRCL) is facing severe financial pressure as it begins repaying a major overseas loan for the unfinished Blue Line Metro to Kempegowda International Airport. Due to the depreciation of the Indian Rupee against the US Dollar, the corporation's repayment burden has surged even though the airport corridor is not yet operational and is generating zero revenue.

BMRCL signed a $500 million loan agreement with the Asian Development Bank (ADB) on August 19, 2021, to fund the Phase 2A and 2B Metro project. While the loan featured a 25-year tenure, the grace period ended this June, forcing the corporation to begin servicing the loan while the Blue Line remains under construction.

When the agreement was signed in 2021, the US Dollar was trading at approximately Rs 74, making the total loan worth about Rs 3,700 crore. With the exchange rate now hovering near Rs 95, BMRCL must pay nearly Rs 21 more for every dollar repaid.

For the $335.12 million drawn by BMRCL so far, the rupee liability has jumped from about Rs 2,480 crore to nearly Rs 3,180 crore. This shift has created an additional foreign exchange burden of around Rs 700 crore on the principal amount alone, excluding interest and other charges.

According to industry estimates, the corporation may need to set aside nearly Rs 150 crore every June and December for these loan repayments. Because the Blue Line is not yet operational, it generates no passenger or non-fare revenue. Mobility experts warn that BMRCL will have to meet these repayment costs using earnings from its existing, operational metro lines, which could ultimately impact passengers.

Additionally, BMRCL is paying a 0.15 percent commitment charge on the remaining undisbursed loan portion of $164.88 million. A BMRCL official noted that while the airport connectivity corridor was originally expected to be operational by now, construction delays mean there is still uncertainty about whether the line will open by the end of this year.