New Delhi: The Union Cabinet on Tuesday approved a moratorium of three years (2020-23) for Cochin Port Authority (CoPA) 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 instalments commencing from 2018-19. However, Cochin Port Authority (CEA) could pay the instalments 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 and 2022-23) to Cochin Port Authority (CoPA) 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 instalments of 2020-21 and 2021-22.

The 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, had 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.

(With PTI inputs)

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