Kochi Metro Rail Ltd (KMRL), known for its timely project execution, is now facing a potential delay in its Phase II expansion due to financial approval challenges. The second phase, extending from Jawaharlal Nehru (JLN) Stadium to Kakkanad, is crucial for improving city connectivity, especially to the IT hub. While the Beijing-based Asian Infrastructure Investment Bank (AIIB) has committed ?914 crore towards the ?1,957.05 crore project, the state government’s hesitation to recommend it to the Centre is holding up the funding approval. 

A key roadblock stems from the Centre’s practice of adding external loans to the state’s financial accounts, a concern for Kerala’s financially strained government. Without this approval, KMRL cannot access the AIIB funds, slowing construction progress. Afcons Infrastructure Ltd, which began initial works in September 2024 with state and central government funding, is facing constraints due to delayed disbursement. 

KMRL remains optimistic, with ongoing discussions aimed at resolving the issue. Initially, the French Development Agency (AFD) was to fund the project but later withdrew due to timeline shifts, prompting KMRL to seek AIIB’s support. The 11.2 km viaduct construction contract has a 20-month deadline, and timely completion would make Kochi Metro one of the fastest metro projects in India. However, slow progress in several areas raises concerns. 

The metro expansion is essential for easing congestion and enhancing sustainable transport, particularly in the fast-growing Kakkanad business district. While KMRL expects a resolution soon, further delays in state approval could jeopardize the project’s timeline, making swift government intervention crucial. 

(Urban acres)