A much-needed credit line for the Kochi Metro Rail project has been opened with the director board of Kochi Metro Rail Limited (KMRL) approving Canara Bank’s offer to provide it a loan of Rs.1,170 crore.
The Canara Bank loan is for a term of 20 years with a moratorium of seven years and would carry an interest of 10.80 per cent floating. This is the first time a nationalised bank is funding a metro project for such a long tenure and amount with an interest rate as low as 10.80 per cent and also on sole banking basis. The total estimated outlay for the project is Rs.5,181.79 crore.
The KMRL director board, which met in New Delhi on Monday with Union Urban Affairs Secretary Sudhir Krishna, who is also KRML chairman, in the chair, reviewed the present status and progress of the project in terms of civil work, tendering, and other aspects. A tripartite agreement was signed among the Government of India, Government of Kerala, and KMRL during the board meeting. Dr. Krishna, Bharat Bhushan, Chief Secretary, Government of Kerala, and Elias George, Managing Director, KMRL, signed the agreement on behalf of the respective stakeholders. This agreement defines the role and responsibilities of these institutions in the project.
Aarvee Associates, Hyderabad, will design a comprehensive rehabilitation and resettlement policy and a compensation package for those whose livelihoods are affected by the project. SENES Consultants Private Limited, Noida, will prepare the environment impact assessment for the project.
The 15th board meeting of KMRL also decided to constitute multidisciplinary committees for monitoring the consultants’ deliverables.