Guwahati: The Cabinet Committee on Economic Affairs, led by Prime Minister, Narendra Modi, has granted a three-year suspension to Cochin Port Authority (CoPA) on repayment of the balance of outstanding Government of India (GoI) loans amounting to Rs. 446.83 crore to tide over the financial crisis caused by the COVID-19 outbreak.
The loan was to be repaid in ten installments beginning in 2018-19. However, the Cochin Port Authority could only pay the 2018-19 and 2019-20 payments. The Covid-19 epidemic severely reduced traffic in 2020 and impacted revenue inflow negatively. As a result, Cochin Port was unable to pay the 2020-21 and 2021-22 installments.
Cochin Port is now subject to the Major Port Authorities Act, 2021, which takes effect in November 2021. On August 24, 2016, the Cabinet Committee on Economic Affairs (CCEA) approved a request to reduce the penalty interest on Government of India loans obtained by Cochin Port for different infrastructural development operations from 1936-37 to 1994-95.
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