KMRL gets Rs 1,000 cr grant from French agency
The Kochi Metro rail project received an approximately Rs 1,000 crore loan facility from the French development agency Agence Frantaise de DTvelopment (AFD), a French development agency.
Out of the total cost of Rs 5,182 crore, Kochi Metro rail project plans to raise Rs 2,170 crore (about 42 per cent of the total cost) as a loan.
State and Central Governments are expected to raise the rest for the Rs 5,182 cr mass rapid transport project.
While the project is expected to receive Rs 2,009 crore from the state government (including land acquisition cost), the central government may chip in with Rs 1,002 crore grant.
Japanese International Cooperation Agency (JICA) has already offered cheaper loans at 1.4 per cent with a longer tenor of 30 years.
However, Kochi Metro Rail Corporation (KMRL) is exploring alternative options since JICA offer would take longer to fructify and had also featured riders, including local sourcing.
Meanwhile, the AFD loan is learnt to have been given at two per cent interest rate with a tenor of 23 years, first nine of which would be treated as moratorium period for purposes of repayment. The offer was made by the visiting Agence Frantaise de DTveloppement representatives to the Chief Minister Oommen Chandy when they met him at the retiring chambers at the State Assembly.