Government Jacks up Aid for Kochi Metro

The Cabinet on Wednesday approved an increase in the state government’s financial assistance for the Kochi Metro Rail project.

Published: 05th December 2013 08:45 AM  |   Last Updated: 05th December 2013 08:49 AM   |  A+A-

Kochi Metro1EPS

The Cabinet on Wednesday approved an increase in the state government’s financial assistance for the Kochi Metro Rail project. Chief Minister Oommen Chandy told a post-Cabinet briefing that the nod has been given for a revised administrative sanction of Rs 242.47 crore for the project.”Earlier, the government had given administrative sanction for Rs 158.68 crore.

The government has decided to increase the amount,” Chandy said. The original amount was a budgetary allocation in the annual budget. The money will be spent on land acquisition and other necessities. 

Meanwhile, the construction of the Kochi Metro Rail is progressing. Regarding the external borrowings for the Rs 5,537 crore Kochi Metro Rail project, the Kochi Metro Rail Ltd (KMRL) authorities had already entered into a consensus with Canara Bank and French financial aid agency, Agence Francaise de Development (AFD). Accordingly, Canara Bank will provide Rs 1,170 crore for Kochi Metro Rail project for  a term of 20 years at an interest rate of 10.80 per cent, with a moratorium of seven years. The total external borrowing requirement of Kochi Metro Rail is nearly Rs 2,170 crore.

The French agency will provide another Rs 1,525 crore (180 million Euros) for the project. As per the authorities, Kochi Metro Rail project is far ahead of other Metro Rail projects in the country in attaining financial closure. The Centre and state governments will also pump in Rs 753 crore each as equity share for the project.

  Along with the construction of the Kochi Metro rail, the preparatory works too are progressing.,

The reconstruction of Ernakulam North Rail Overbridge (ROB), one of the major preparatory work, is expected to be completed by the end of this month. The then LDF government, in 2010, made an allotment of Rs 156 crore for preparatory works of Kochi Metro Rail, including the North ROB reconstruction, new flyover at Salim Rajan Road and the widening of Banerjee Road and MG Road.

  Later, the UDF Government, in 2012 budget, had made the allocation of Rs 150 crore.



Stay up to date on all the latest Kochi news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp