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Kochi Metro Rail Ltd (KMRL), one of the few agencies in Kerala that has successfully completed most of its projects on time, is now facing a critical challenge that threatens to delay the much-anticipated Phase II line of the Kochi Metro. The phase, which will extend the metro from Jawaharlal Nehru (JLN) Stadium to Kakkanad, is crucial for enhancing connectivity in the city. However, financial hurdles are threatening to derail the timeline.
The primary reason behind the delay is not a lack of funding, as the Beijing-based Asian Infrastructure Investment Bank (AIIB) has already committed a substantial financial assistance package of Rs 914 crore for the project. The total cost of the Phase II project, also referred to as the Pink Line, is estimated at Rs 1,957.05 crore. The challenge lies in the complex approval process for the funds. KMRL, a joint venture between the central and state governments, requires final clearance from the Centre to access these funds. However, the state government’s hesitation to recommend the project to the Centre is delaying the process, preventing KMRL from securing the much-needed loan.
An official familiar with the situation explained that the state government’s reluctance is due to the Centre’s practice of adding any loan amount to the state’s financial accounts. This practice creates significant concern, especially for a government already grappling with a financial crisis. Without the state government’s endorsement, KMRL cannot proceed with securing the AIIB funds, placing the project’s timeline in jeopardy.
While the loan from the AIIB is intended to cover a portion of the project’s cost, the delay in the approval process has already had a ripple effect on the construction works. Afcons Infrastructure Ltd, which won the contract for the Phase II line works, began preliminary construction of the viaduct and stations in September 2024 using preliminary funds provided by both the central and state governments. However, the construction progress has been slow due to the financial constraints caused by delayed funding.
Despite the challenges, KMRL authorities have remained optimistic, holding several rounds of discussions with the state government in hopes of a positive resolution. “We are hopeful that the discussions will lead to a decision soon, allowing us to approach the Centre for final approval,” said KMRL Managing Director. The authorities are also working on resolving the issues around the delayed loan, which they believe will soon be sorted out.
The project has already faced delays in the past. Originally, the French Development Agency (AFD) was to fund the Phase II line. However, as the project timelines were pushed further, AFD pulled out, forcing KMRL to turn to AIIB for financial support. Despite this, KMRL has awarded the contract for the construction of the viaduct, with a timeline of 20 months to complete the 11.2 km stretch. If the construction works are completed within the stipulated time, Kochi Metro would earn the distinction of being the fastest metro construction agency in India. However, as of now, construction in many areas is progressing at a slower pace than expected.
This project is crucial for the city, as it will enhance connectivity and ease the burden on the already congested roads. It is particularly important for improving access to the Kakkanad IT hub, a growing business district that has seen an influx of people and traffic. With the completion of the metro line, commuters are expected to have quicker, more reliable access to the area, promoting sustainable transportation.
Despite the ongoing challenges, KMRL is hopeful that the situation will improve soon and the project will continue to move forward. The Centre’s final approval for the funding, expected in the coming weeks, is crucial for keeping the Kochi Metro Phase II project on track. However, without the resolution of the state’s financial concerns, the project may face further delays, putting its timeline in serious jeopardy.
