|The Kochi Metro Rail Ltd (KMRL) will finalize the funding plan for the rail project in three weeks.|
KMRL need a little above Rs 2,000 crore as loan to implement the project. It has received loan offers from nationalized banks and public sector concerns, including Hudco, to fund the project. This is in addition to offers from agencies such as Agence Francaise de Developpement (AFD), a French development agency.
The banks are ready to fund individually or by forming a consortium. KMRL is designing an architecture for financing the project by incorporating these multiple options.
The present plan is roughly is to rely on international funding agencies for half the Rs 2,000 crore that KMRL plans to raise through external borrowings. The other half could be raised from domestic sources.
The State Bank of India, State Bank of Travancore and Canara Bank are some of the nationalized banks which have shown willingness to part fund the project.
The project would require Rs 1102 crore for land acquisition and KMRL may rely on the Hudco loan for this. No other agency is willing to extend loan for land acquisition. Currently, land acquisition is being done using funds allocated by the state government. If there is any shortfall in this, KMRL will have to rely on the Hudco loan.
The Delhi Metro Rail Corporation (DMRC), which is executing the project, has indicated that the quarterly expenditure for the project would come to about Rs 221 crore once the actual work starts. The expenditure would be about Rs 12 crore for the preparatory work.