KOCHI: Kochi Metro Rail Ltd (KMRL), which is among the few agencies in Kerala that successfully completed most of its projects as scheduled, may fail to meet its deadline for crucial Phase II line of Kochi Metro from JLN Stadium to Kakkanad.
This is not due to lack of funding. Beijing-based Asian Infrastructure Investment Bank (AIIB) has granted financial assistance for Phase II line. However, to access the funds, state govt needs to recommend the project to Centre, and based on this, Centre would approve loan. This is crucial as KMRL operates as a joint venture between central and state govts and needs final clearance from Centre to secure loan.
“State govt’s hesitation is due to Centre’s practice of including any loan amount in state govt’s financial accounts,” said an official.
Therefore, although AIIB has agreed to provide financial assistance of Rs 914 crore out of the total cost of Pink Line project, Rs 1,957.05 crore, KMRL may not be able to avail itself of the funds if Centre and state don’t agree. Afcons Infrastructure Ltd won contract for Phase II line works and preliminary level construction works of viaduct and stations began in Sept 2024 using preliminary funds allotted by central and state govts. However, construction progress has significantly slowed down due to financial constraints and delayed funding from AIIB has further exacerbated the situation.
KMRL authorities have held several rounds of discussions seeking a positive decision from state govt, which is essential for KMRL board to approach Centre for final approval for funding. It is learnt that state govt, which is reeling under a financial crisis, doesn’t want to bear the huge amount of debt for the joint venture company with Centre.
Initially, loan for Phase II was intended to come from French Development Agency (AFD). However, as the project got delayed, AFD backed out and focus shifted to AIIB.
KMRL has officially awarded contract for construction of viaduct to Afcons. As per the contract, duration of the work is 20 months. If the 11.2-km construction works can be completed within 20 months, Kochi Metro will earn the title of the fastest Metro construction agency in India. However, works in many stretches are progressing at a snail’s pace.
KMRL managing director Loknath Behera said issues regarding delay in availing loan would be resolved soon. “Discussions are going on and we are hopeful that we can approach Centre for final approval for availing loan in the coming weeks,” he said.
