Kochi Metro Rail Limited has received approval to seek a loan of Rs1,016 crore, equivalent to 10,160 million (mn), for the second phase of the Kochi metro.

The permission allows the corporation to initiate formal borrowing processes from lenders and financial institutions to secure project funding and to align financing timelines with project requirements.

The funding package is expected to cover civil works, systems and other project costs associated with extending services to additional corridors, and the authority will finalise loan terms, including tenure and interest, in negotiations with prospective financiers.

Regulatory approvals and environmental clearances will be secured as needed before major contracts are awarded and procurement and contracting processes will follow standard tendering procedures.

Stakeholders noted that timely release of funds will be critical to maintain construction schedules already outlined in project reports and that the loan approval will enable the operator to issue tenders for civil and electrical works and to secure suppliers for signalling and rolling stock as required.

Officials will provide periodic updates to stakeholders as financing progresses and as key milestones are achieved, and the corporation will report on disbursement and utilisation of loan proceeds to relevant authorities to maintain transparency.