NEW DELHI: Cochin Port Authority has been granted a three-year reprieve from repaying the central government for loans totaling Rs 446.83 crore.
According to an official statement released after the union cabinet meeting on Tuesday, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a three-year moratorium for Cochin Port Authority (CoPA) on repayment of the balance outstanding Government of India (GoI) loans amounting to Rs 446.83 crore to tide over the financial crisis caused by the COVID-19 pandemic.
The amount was supposed to be paid back in ten instalments starting in 2018-19. The Cochin Port Authority, on the other hand, may be able to pay only the 2018-19 and 2019-20 instalments.
The COVID-19 pandemic had a significant influence on traffic beginning in the financial year 2020-21. This has a negative impact on the Authority's cash flow. As a result, Cochin Port was unable to pay the 2020-21 and 2021-22 instalments.
With effect from November 2021, the Major Port Authorities Act, 2021 has been applied to Cochin Port. On August 24, 2016, the Cabinet Committee on Economic Affairs (CCEA) approved a request to waive penal interest on Government of India loans obtained by Cochin Port for different infrastructural development initiatives between 1936-37 and 1994-95.
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