KMRL gets nod to seek ₹1016-cr. loan for Kochi metro phase-2

The State Cabinet on Wednesday permitted Kochi Metro Rail Limited (KMRL) to seek a loan of ₹1,016.24 crore from the Asian Infrastructure Investment Bank (AIIB) for the second phase of the Kochi metro.

Minister for Industries P. Rajeeve said in a communication that the second phase of the Kochi metro would be completed in a time-bound manner. A memorandum of understanding was signed involving the Centre, State government, and KMRL in 2023 for implementing the second phase of the project from Jawaharlal Nehru International Stadium to Infopark via Kakkanad.

The process of seeking loan to the tune of ₹1016.24 crore was initiated after the signing of the agreement. The authorities held talks with five international funding agencies including AIIB, which agreed to provide the assistance. The loan has to be repaid in 25 years, including a five-year repayment moratorium, it said.

The State Cabinet had accorded administrative sanction for the revised estimate of ₹1,957.05 crore for the 11.2-km Kochi metro extension from Jawaharlal Nehru stadium to Kakkanad in March 2023. The Union government had approved the second phase of the metro in September 2022.

According to the funding plan, the Centre and State governments will provide ₹274.90 crore each as equity for the project. It will have a 16.23% contribution through this fund infusion. The Centre and the State will provide ₹63.85 crore each (3.77%) as subordinate debt of Central taxes for the Phase-II work.

Loan from bilateral/multilateral agencies forms ₹1,016.24 crore (60%). The total cost excluding land, resettlement, and rehabilitation and public-private partnership component will come to ₹1,693.74 crore.

Work on the second phase of the metro is expected to be completed by December 2026, according to KMRL.