Bank loan

The company can raise a bank loan to complete an office complex

The Kochi Corporation can apply for a bank loan to complete the construction of its new office complex.

It is estimated that the building, which stands near Marine Drive, could cost around ₹60 crore for completion.

The civic body has already disbursed around ₹19 crore for the project, which was started in 2005. The estimate for the project was revised to around ₹25 crore in 2006. Construction of the building was stalled for some time, which led to increased costs.

A package of proposals worth ₹28 crore will be submitted for consideration by the board of Kochi Corporation, which will meet on Tuesday. The proposals relate to interior electrification works, Wi-Fi, lighting, fans, air conditioners, workstation layouts and the UPS system. Proposals for the supply of furniture, painting and interior and finishing work will also be submitted for consideration by the council.

Financial proposals will be forwarded to the Chief Engineer of the Public Works Department as they reach millions. Some of the elected representatives of the UDF had previously made such a request.

Raising loans, Mayor M. Anilkumar said, for such projects is not new to the civic body. Earlier too, the civic body had taken out bank loans to meet the financial needs, including the purchase of the land in Brahmapuram. Repayment of loans will be possible for the community. In a few years, the amount, which will have to be raised now, will not be a financial burden and repayment of the loan will be an easy affair, he said.

On the suggestion of making full use of the civic body’s plan fund to complete the building, which was raised at a recent meeting of the corporation’s finance standing committee, Mr Anilkumar said the entire plan funds cannot be used for the project as it would conflict with other civic body activities. A portion of the Plan fund could be used. The remaining amount must be generated by other means, including the loan, he said.