Bank keen to lend Rs 1,200 cr to Kochi Metro project

The Kochi Metro Rail (KMRL) has stated that an Indian bank has come forward to extend a loan of Rs 1,200 crore at attractive rates of interest for the city metro rail project. Till now, the KMRL has been relying on international funding for the 5,180 crore project. The bank's loan will complement the loan offered by Agence Francaise de Developpement (AFD), the French development agency.

KMRL said on September 18 that it will decide on the bank loan before the end of this year. The Kochi Metro needs an external borrowing of about Rs 2,170 crore. AFD, which had initially offered a loan of about Rs 1,000 crore, is now planning to raise the amount. Now with the Indian bank's offer of loan the project has received a shot in the arm. But KMRL declined to reveal the name of the bank.

AFD would sign an agreement with both the State and Central governments for the project once it is cleared from the Union department of economic affairs.