Kochi Metro to receive Loan from French agency by February

The total project cost of the Metro Rail is Rs 5,537 crore and KMRL is looking for an external borrowing of Rs 2,170 crore

Agence Francaise de Development (AFD), the French financial agency, is expected to provide the first instalment of loan for the Kochi Metro Rail project by February 2014. The final appraisal mission of the French agency  that visited the city last month had given its nod for the funding. The total project cost of the Metro Rail is Rs 5,537 Crore and KMRL is looking for an external borrowing of Rs 2,170 Crore for it.

Of the total external borrowings, KMRL is looking for a loan to the tune of Rs 1,500 Crore from AFD. It is also learnt that KMRL had reached a consensus with a nationalised bank for the remaining part of the external borrowing.

Out of the total project cost, the Centre and the state governments will pump in Rs 753.73 Crore  in the form of equity shares. The subordinated debts will come up to Rs 672 Crore while the reimbursement of taxes will amount to Rs.497 crore. So far, Centre and state governments have given Rs 449.25 Crore  as subordinate debt and equity share.

The total cost of land acquisition for the project is estimated at Rs.1110 Croe. The authorities concerned have already reached a consensus with HUDCO for a loan of Rs 538 cr  for meeting the land acquisition requirements.

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