KOCHI: The state cabinet on Wednesday granted the Kochi Metro Rail Limited (KMRL) approval to avail a loan of Rs 1,016.24 crore from the Asian Infrastructure Investment Bank (AIIB) for the implementation of the Kochi Metro phase 2 project.
The cabinet also authorised KMRL to enter into a loan agreement and a project agreement with AIIB to facilitate the funding. Industries Minister P Rajeeve said the government would expedite further procedures and reiterated that the second phase of the metro project would be completed within the stipulated timeframe.
The phase 2 section, called the Pink Line, is an 11.2-km elevated corridor connecting the JLN Stadium station to Infopark via Kakkanad. The corridor comprises 11 stations and is designed to significantly enhance connectivity to key IT hubs.
The Centre, state government, and the KMRL had signed a memorandum of understanding in 2023 to implement the project, following which steps were initiated to mobilise the Rs 1,016.24 crore loan component. Bilateral discussions were held with five international financial institutions, including AIIB, which subsequently expressed willingness to extend the loan.
The loan will have a tenure of 25 years, including a five-year moratorium period, officials said. With the cabinet approval in place, formalities related to securing funds and signing agreements will now be fast-tracked.