First metro project in country to secure sum on sole banking basis
Kochi: The Kochi Metro Rail Ltd is the first metro project in the country that has managed to secure funding over Rs 1,000 cr on sole banking basis, officials said. The KMRL authorities submitted the loan application on June 6 last year and after appraisal and evaluation final sanction was issued on September 12. Later, the bank gave several relaxations, after further negotiations, including waiver of all charges, including commitment charges, prepayment premium and withdrawal of Lenders Independent Engineer, which helped KMRL to save substantial amount. The agreement was tailor made for KMRL with many deviations from the banks standard format.
“We decided to seek domestic loan since there has been a gap of Rs 1000 cr even after the foreign loan from French agency, AFD. Though several banks and financial institutions offered funds, Canara Bank emerged to be the best in terms of interest, tenure, other cost and charges it was decided to go for a long-term loan from Canara Bank”, said Elias George.
The total cost of the Metro project is Rs 5181 cr of which Rs 2170 cr is from external funding. KMRL had already signed agreement with the French funding agency of Agence Française de Développement (AFD) for 180 million Euros on February 8. Now with the domestic loan from Canara Bank, the financial closure is formally completed.
“Banks have relaxed norms for providing long-term infrastructure loans. We have offer from many banks to provide loan for Tripunithura extension, Phase II and for property development at Kakkanad and Muttom,” added the KMRL MD.
‘Ready to loan Monorail works’
Addressing the media after the agreement signing ceremony, Canara Bank Chief managing director R.K. Dubey, said that the bank was ready to provide loan for other non- Metro infra projects like monorail at Thiruvananthapuram and Kozhikode. “The bank is keen on cooperating with major development projects of the state and funds will not be an issue for such projects. We will continue to associate with Kochi Metro Rail,” he said.
( Source : dc correspondent )
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