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Kochi Metro Rail Limited (KMRL) today announced Axis Bank has agreed to invest entire funds required for the automatic fare collection system (AFC) for Kochi Metro, including the Phase -II Metro.
The bank will pay an additional royalty of Rs 209 crore to KMRL over the next 10 years for the right to be KMRL's partner.
The entire maintenance of AFC system over 10 years will be undertaken by Axis Bank. The bank will issue co-branded debit cards to the users of the metro.
In addition to this, 20 per cent of Axis Bank's gross revenue, from the utilisation of this debit card outside KMRL's ecosystem in various mercantile outlets and internet transactions, will also lead to revenues to KMRL over the next 10 years.
KMRL managing director Elias George in a press conference said the business model was expected to transform funding models for AFC systems across the global metro rail systems.
