Kerala Cabinet Clears AIIB Loan For Kochi Metro Pink Line

20 Feb 2026 CW Team

The Kerala state Cabinet has approved Kochi Metro Rail Limited to seek a loan of Rs 10,162.4 million (Rs 10,162.4 mn) from the Asian Infrastructure Investment Bank to finance Phase II of the Kochi Metro, known as the Pink Line. The line will run for 11.2 kilometres from Jawaharlal Nehru Stadium in Kaloor to Infopark in Kakkanad and will serve major information technology hubs and government offices. The funding decision follows a formal recommendation to enable KMRL to finalise agreements and secure the resources required to resume and accelerate construction.

Officials indicated that the loan is essential because work had slowed on account of funding shortfalls despite early groundwork, including piling, being around 80 per cent complete. The Cabinet approval allows KMRL to enter into binding financing arrangements with the AIIB and to complete the procurement and tender processes that had been pending. The move is expected to unblock stalled activities on elevated structures and station works.

Phase II is designed to improve urban mobility by linking busy employment zones and by easing traffic on the congested Seaport–Airport Road and other arterial corridors. The route will include 11 stations and is expected to serve thousands of daily commuters, with particular benefit to employees of special economic zones and technology parks. Planners anticipate that the metro link will provide a faster and more reliable alternative to road travel for many workers.

The project is jointly funded by the central government and the Kerala government, and construction firms are already engaged on viaduct and related civil work. KMRL will focus on signing loan and project agreements with the AIIB so that civil and station construction can proceed at pace, while project managers target completion of the Pink Line by December 2026. The Cabinet decision is intended to provide the financial certainty necessary to meet that timetable.

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