Bengaluru, March 24 The Japan International Cooperation Agency (JICA) announced on Tuesday that it had signed a loan agreement with the central government to provide an Official Development Assistance (ODA) loan of 102,480 million Japanese Yen for the Bengaluru Metro Rail Project Phase 3 (I).
The loan agreement was signed in New Delhi between Alok Tiwari, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Takeuchi Takuro, Chief Representative of JICA India Office.
According to JICA, the project aims to address the growing traffic demand in the Bengaluru Metropolitan Region in Karnataka by expanding the mass rapid transportation system.
The initiative is expected to promote regional economic development, improve the urban environment, and mitigate climate change by easing traffic congestion and reducing pollution caused by the increasing number of motor vehicles, it said in a release.
The project will include civil and architectural works for approximately 44.65 km of metro lines with 31 elevated stations, comprising the Outer Ring Road section (Corridor 3‑1) and the western growth corridor (Corridor 3‑2).
By connecting with the Airport Line and Line 6, the project will complete a circular network around the city center, substantially improving airport access, strengthening interchange with existing east–west lines, and enhancing overall travel efficiency across Bengaluru, JICA said.
It will also promote transit-oriented development (TOD) through multimodal integration, including feeder buses, shared mobility services, and double-decker viaduct structures, it said.
Further stating that the Bangalore Metro Rail Corporation Limited (BMRCL) will serve as the executing agency responsible for the implementation of the project, it said, "The loan will have a repayment period of 30 years, including a grace period of 10 years, with an interest rate of Tokyo Term Risk Free Rate (TORF) + 80 basis points for the project and 0.80 per cent for consulting services, and procurement will follow general untied conditions."
The project is expected to contribute to the United Nations Sustainable Development Goals, particularly in the areas of decent work and economic growth, industry and infrastructure development, sustainable cities and communities, and climate action, JICA said.
The project is scheduled to be completed by January 2032, with invitations for consulting services expected to be issued in April 2026.
The tender announcement for the initial procurement package for civil works for the viaduct portion is planned for May 2026.