Sunday, July 20, 2014

#Canara Bank to give Rs 1,170 crore term loan to #Kochi Metro Rail project

Kochi Metro Rail Ltd (KMRL) and Canara Bank has signed a term loan agreement for Rs 1,170 crore. The project is estimated to cost Rs 5,181 crore with Rs 2,170 crore coming from other sources.Canara Bank loan is for a term of 19.5 years with a moratorium of 7 years. The rate of interest will be 10.80% floating.
KMRL has already signed an agreement with the French development agency, Agence Francaise de Development (AFD), for 180 million Euros (approximately Rs 1,500 crore) on February 8.

Canara Bank chairman and managing director R K Dubey has said that Canara Bank will support to various infrastructure projects undertaken by the state government including "Kannur airport and other projects being implemented in Thiruvananthapuram and elsewhere in the state". This includes monorail projects planned in Thiruvananthapuram and Kozhikode. The bank has also promised to provide further assistance if required for the Metro.
“With the robust financial assistance through a balanced mix of external and domestic funding from two of the most reputed funding agencies, KMRL can now go ahead confidently with the project implementation. This will boost the confidence of stakeholders of the project and would enable us to rope in the best resources for the project at a competitive price ”, said Shri. Elias George, MD, KMRL.

The agreement was signed in the presence of R.K. Dubey, CMD Canara Bank , Shri. Elias George, MD, KMRL and Shri. Aryadan Mohammed, Minister for Power and Railways, Government of Kerala.