Fri Sep 05 17:31:57 UTC 2025: ## News Article: Bengaluru’s Twin Tunnel Road Project Receives Massive HUDCO Loan
**Bengaluru, September 5, 2025** – Bengaluru Smart Infrastructure Ltd (B-SMILE) has secured a significant loan of ₹9,303.66 crore from the Housing and Urban Development Corporation (HUDCO) for the construction of the first corridor of the ambitious Twin Tunnel Road project (North-South corridor). The news was first reported by The Hindu.
The loan sanction, dated August 4, 2025, and reviewed by The Hindu, outlines the terms for the massive infrastructure project aimed at easing traffic congestion in the city. The North-South corridor, spanning 16.8 km, is estimated to cost a total of ₹17,780.13 crore.
HUDCO has stipulated that B-SMILE provide necessary documentation and finalize a formal agreement before the loan is officially activated. The loan is primarily secured by a guarantee from the State government.
The interest rate for the loan is set at 8.95% for the initial year, factoring in a 0.10% rebate. The repayment schedule spans 24 years and 2 months (290 months), with a 4-year, 2-month (50 months) draw period followed by a 20-year (240 months) repayment period. Disbursement of funds will be phased, as agreed upon by both parties.
As a condition of the loan, B-SMILE is required to prominently display signboards at all project sites, acknowledging HUDCO’s substantial financial contribution to the crucial infrastructure development. The Twin Tunnel Road project is expected to significantly improve traffic flow within Bengaluru upon completion.
First Piper 