Cabinet approves 3-yr loan repayment moratorium for Cochin Port Authority

The Union Cabinet on Tuesday approved a moratorium of three years (2020-23) for Cochin Port Authority (CPA) towards repayment of the balance of outstanding Government of India loans amounting to Rs 446.83 crore to tide over the financial crisis due to COVID-19, an official statement said.

The amount was to be repaid in 10 installments commencing from 2018-to 19. However, Cochin Port Authority could pay the installments of 2018-19 and 2019-20 only.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has ''approved a moratorium of three years (2020-21, 2021-22 & 2022-23) to Cochin Port Authority (CPA) towards repayment of the balance outstanding Government of India (GoI) loans amounting to Rs 446.83 crore to tide over the financial crisis due to COVID-19 pandemic'', it said.

From 2020-21, traffic was badly impacted due to the pandemic, which adversely impacted CoPA's cash inflows, due to which it could not pay the installments of 2020-21 and 2021-22.

Cochin Port has been brought under the Major Port Authorities Act, 2021 with effect from November 2021.

The Cabinet Committee on Economic Affairs (CCEA) on August 24, 2016, approved a proposal for waiver of penal interest on GoI loans taken by Cochin Port for various infrastructure development activities during 1936-37 to 1994-95.