Kochi Metro Phase II Linking Stadium to Infopark By December 2026; ₹1,016 Crore Loan Cleared

Big news from Keralites! The Kerala Cabinet has just given Kochi Metro Rail Limited (KMRL) the green light to borrow ₹1,016.24 crore from the Asian Infrastructure Investment Bank (AIIB) for Phase II of the Kochi Metro project. This isn't just another metro extension. It's a major boost for Kerala infrastructure and urban mobility, stretching the Metro from Jawaharlal Nehru International Stadium all the way to Infopark through Kakkanad, one of Kochi's fastest-growing IT hubs.

Industries Minister P Rajeeve said the new corridor comes with a strict deadline. The project is part of a 2023 agreement between the Centre, the Kerala government and KMRL for implementing Kochi Metro Phase II.

After the agreement was signed, officials reached out to five international financial institutions before AIIB agreed to provide the funding. The ₹1,016.24 crore AIIB loan will be repaid over 25 years, with a five-year moratorium period before repayments begin - giving KMRL financial breathing space.

The revised project cost for the 11.2-km extension between the stadium and Kakkanad stands at ₹1,957.05 crore. The Kerala Cabinet approved this in March 2023, while the Union government had cleared Phase II in September 2022.

Here's how the funding structure works: the Centre and the State government will each contribute ₹274.90 crore as equity, together accounting for 16.23% of the total cost. Both will also provide ₹63.85 crore each as subordinate debt, which makes up another 3.77%. Nearly 60% of the funding will come from external borrowings, including the AIIB loan.

If land acquisition, resettlement, rehabilitation and PPP components are excluded, the core project cost stands at ₹1,693.74 crore.

KMRL has projected December 2026 as the completion deadline for Kochi Metro Phase II, a project expected to improve connectivity to Kakkanad IT corridor and ease traffic congestion in the city.