NEW DELHI: The Central Government has granted the Cochin Port Authority a three-year respite from repaying loans totaling Rs 446.83 crore.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a three-year moratorium on repayment of the balance outstanding Government of India (GoI) loans amounting to Rs 446.83 crore for Cochin Port Authority (CoPA) to tide over the financial crisis caused by the COVID-19 pandemic, according to an official statement released after the union cabinet meeting on Tuesday.
Starting in 2018-19, the money was scheduled to be paid back in ten instalments. On the other side, the Cochin Port Authority may only be able to pay the 2018-19 and 2019-20 instalments.
Beginning in the financial year 2020-21, the COVID-19 pandemic had a substantial impact on traffic. The Authority’s cash flow will suffer as a result of this. As a result, Cochin Port was unable to pay the instalments due in 2020-21 and 2021-22.
The Major Port Authorities Act, 2021, has been applied to Cochin Port with effect from November 2021. The Cabinet Committee on Economic Affairs (CCEA) granted a plea to reduce penal interest on Government of India loans received by Cochin Port for various infrastructural development efforts between 1936-37 and 1994-95 on August 24, 2016.