Kerala Govt approves AIIB funding for Kochi Metro’s pink line extension
The 11.2-km Pink Line project has an estimated cost of ₹1,957.05 crore.
The 11.2-km Pink Line project has an estimated cost of ₹1,957.05 crore.
The 11.2-km Pink Line project has an estimated cost of ₹1,957.05 crore.
Kochi: In a major boost to the Phase II extension of Kochi Metro, the state Cabinet has granted permission to Kochi Metro Rail Limited (KMRL) to avail a loan of ₹1,016.24 crore from the Beijing-based Asian Infrastructure Investment Bank (AIIB).
The approval clears a long-pending decision that had slowed the progress of the Metro’s new Pink Line connecting JLN Stadium to Infopark. As a joint venture between the Centre and the State, KMRL requires state recommendation before securing final clearance from the Union government to access external funding.
With the Cabinet’s nod on Wednesday, KMRL can now enter into a formal loan agreement with AIIB and proceed with financial arrangements essential for the project’s timely execution. Sources said the proposal had been awaiting approval for several months and was expected earlier.
The 11.2-km Pink Line project has an estimated cost of ₹1,957.05 crore, of which AIIB will contribute ₹914 crore as financial assistance. The viaduct contract, valued at ₹1,141.32 crore, has been awarded to Afcons Infrastructure Ltd, and preliminary construction began in September 2024.
Currently, the works are progressing with initial funds allocated by the Centre and State governments. However, officials indicated that the AIIB funding is crucial to maintain construction momentum and meet commissioning targets. KMRL aims to open a section of the line by June, with overall completion targeted by the end of the year.
The loan was originally planned through the French Development Agency (AFD), but the agency withdrew after project delays, prompting KMRL to approach AIIB.
As per the contract, Afcons has a 20-month deadline to complete the works. If achieved within this timeframe, Kochi Metro could emerge as one of the fastest metro construction agencies in the country. However, progress in some stretches has been slow, raising concerns about potential delays and the resulting traffic congestion along the busy corridor linking the city centre to Kakkanad.