New Delhi, Jun 14 (IANS): The Union Cabinet on Tuesday approved grant of moratorium to Cochin Port Authority on repayment of Government of India (GoI) loans for a period of three years.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved a moratorium of three years (2020-21, 2021-22 and 2022-23) to Cochin Port Authority (CoPA) towards repayment of the balance outstanding GoI loans amounting to Rs 446.83 crore to tide over the financial crisis due to Covid-19 pandemic.

The amount was to be repaid in 10 instalments commencing from 2018-19.

However, Cochin Port Authority could pay the installments of 2018-19 and 2019-20 only.

From 2020-21, the traffic was badly impacted due to Covid-19 pandemic which adversely impacted the cash inflow. As a result, Cochin Port 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 CCEA on August 24, 2016 had approved the proposal for waiver of penal interest on GoI loans taken by Cochin Port for various infrastructural developmental activities during 1936-37 to 1994-95.