KMRL signed loan Agreement with Ernakulam District Cooperative Bank

K0chi: Kochi Metro Rail Limited has signed an agreement for an additional term loan of Rs.366 crore with the Ernakulam District Cooperative Bank for funding the land acquisition requirements for the Kochi Metro Rail project. DCB had earlier sanctioned Rs.470 crores for KMRL. However, since the amount of Rs.104 Crore, which will be required for widening of Vyttila- Petta road, need cabinet approval, KMRL and DCB signed agreement only for Rs.366 crore as the first tranche. The cabinet approval on this is expected in a month’s time and the agreement for the rest of the amount will be signed separately after this. Shri.Abraham Oommen, Director (Finance) and Shri Radhakrishnan MK, General Manager, DCB signed the agreement today in the presence of Shri.N.P.Poulose, President, Shri.P.P.Uthuppan, Vice President, other directors and executive members of the bank at their head office in Thrikkakkara

KMRL decided to explore the possibility of obtaining a supplementary loan for land acquisition as the Government of Kerala was unable to release sufficient funds as required to complete the land acquisition.  This loan will be subject to repayment by the Government of Kerala from their annual budgetary provisions over a period of 12 years.  The loan will be available for a floating interest rate of 9.95%, which is linked to SBI’s base rate of interest and with no attached charges including processing fee.