RailEnquiry

KOCHI: In an indication of growing interest in the ambitious Rs 5,180 crore Kochi Metro rail project, an Indian bank has offered to lend almost Rs 1,200 crore at attractive rates for the project. So far, authorities were primarily banking on international funding during the initial stage.

Kochi Metro Rail Ltd (KMRL) managing director Elias George, who refrained from disclosing the name of the bank, said, "The bank has offered a good interest rate and will complement the loan offered by Agence Francaise de Developpement (AFD), the French development agency." George was addressing media persons after holding talks with AFD officials on Tuesday. He said "they would take the final call on the loan before the end of the year".

The Kochi Metro requires 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. The agency has offered a loan of around 150-180 million Euros (Rs 1,100 crore - Rs 1,523 crore) with a two per cent interest. The AFD loan has a 20-year tenure and comes with a moratorium of five years.

AFD's head of the transport and energy division (Paris) Alain Ries said that an agreement would be signed with both state and Central governments subject to approval from the department of economic affairs.

The foreign exchange rates will be a deciding factor in finalizing the loan amount.

Earlier in the day, French representatives visited Metro sites at Pettah, Kunnarapark, MG Road, Jawaharlal Nehru Stadium, Kalamassery casting yard and Muttom yard.