Bengaluru's Twin Tunnel Project Gets a ₹9,300 Crore Boost

The Housing and Urban Development Corporation (HUDCO) has sanctioned a ₹9,303.66 crore loan to Bengaluru Smart Mobility Infrastructure Limited (B-SMILE) for the development of the North-South corridor under the city’s ambitious Twin Tunnel Road project.

According to the sanction letter, the loan will be guaranteed by the Government of Karnataka. HUDCO has instructed B-SMILE, a Special Purpose Vehicle (SPV), to complete formalities by submitting the required documents and executing the loan agreement before funds can be disbursed.

The 16.8 km corridor is estimated to cost ₹17,780 crore, with B-SMILE contributing 47.67% of the total project cost. The remaining funding is expected to be mobilised through additional financial instruments and public-private partnerships.

Key loan terms include:

Interest rate: 8.95% for the first year (post a 0.10% rebate), Tenure: 24 years and 2 months (290 months total), Drawal period: 5 years and 2 months,Repayment period: 20 years

The Twin Tunnel Road project is a cornerstone of Bengaluru’s urban mobility transformation, aimed at easing congestion and improving travel efficiency across the city’s dense core.

News by Rahul Yelligetti.