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Consortium of Banks Formed To Mobilize Funds for VMH

February 09 2011 4:03 PM

KOCHI: Fisheries and Registration Minister S Sarma said money will not be a hindrance for the timely completion of the Vyttila Mobility Hub. He was speaking to reporters after meeting the representatives of various banks regarding the resource mobilization for the Vyttila Mobility Hub. He said a consortium of banks will be formed to mobilize funds for the project. All the 14 banks which took part in the meeting expressed interest to join the consortium to fund the Vyttila Mobility Hub. Union Bank, the lead bank in the district, will lead the consortium. The minister said even though the government was expecting funds from the JNNURM, the government was considering the consortium for the timely completion of the project even if JNNURM funds are delayed. If the project is delayed, then the estimated rates will have to be reviewed and this will create additional liability for the state government. It is to avoid this situation that the loan from the consortium of banks is being considered. The total cost for the project is `376 crore. Fifty percent of the cost is expected to be covered by the Centre if the JNNURM funds are allotted. Thirty percent of the cost is expected to be covered by the state government and the rest is to be raised by the Vyttila Mobility Hub Society. The state government is expecting to raise `114.12 crore as bridge loan and `150.56 crore as term loan from the banks at 9 percent interest and with a moratorium of two years. The banks have yet to agree to these conditions and so these details will be decided only after further discussions with the banks. District Collector M Beena, nodal officer for City Development Projects T K Jose and Kitco officials were present.