Andhra Pradesh Chief Minister N Chandrababu Naidu Made Fresh Plea For Building Metro Rail Systems In Visakhapatnam & Vijayawada

Andhra Pradesh Chief Minister N Chandrababu Naidu Made Fresh Plea For Building Metro Rail Systems In Visakhapatnam & Vijayawada

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Date Of Post: 15 Jan, 2018

Vijayawada: State Chief minister N Chandrababu Naidu during his meeting with PM Narendra Modi in New Delhi two days ago made a fresh plea for building metro rail systems in Visakhapatnam and Vijayawada. “A specific road map and an action plan has to be drawn and implemented” without further loss of time, he told the Prime Minister.

Metro In Vijayawada-

  • The state government first wanted to go for a (medium) metro rail & got a DPR (Detailed Project Report) prepared by the DMRC (Delhi Metro Rail Corporation) in 2015.
  • In July 2015, after scrutinizing the DPR, the Union Ministry of Urban Development found Vijayawada “ineligible” for a metro for a variety of reasons, including a meagre financial Internal Rate of Return of just 3. 47% against the stipulated 8% and above.
  • The Centre eventually “rejected” the Vijayawada Metro proposal in March 2017 saying it was “not financially viable”.
  • In the meantime, the state government toyed with the idea of taking up a light rail system or an elevated bus rapid transit system for Vijayawada before finally settling for a light rail system.
  • A senior official of the Amaravati Metro Rail Corporation, noted,”The light rail technology (LRT) is more flexible and profitable than the metro system. The LRT system is one of the most avant-garde technologies operating in Germany and France while the metro train system is more rigid.”
  • AMRC Managing Director N P Ramakrishna Reddy said,”We are now getting a DPR prepared for the LRT. A consortium led by French firm Systra has been engaged for this while KfW of Germany is funding it. Once the DPR is ready, we will submit it to the Centre for approval.”

Visakhapatnam Metro-

  • Last year the state government finally decided on the PPP (public-private partnership) route for the Rs 8,800 crore Visakhapatnam Metro project.
  • Reddy said,”This is at an advanced stage and we have invited bids for expression of interest and Korean, Malaysian and Indian companies have evinced interest in Visakhapatnam Metro. Filing of bids will close on February 27 and then request for proposal will be invited from the companies.”
  • Of the total project cost, the private developer would have to spend Rs 4200 crore on non-civil works, while the state government would invest the balance on civil works, he informed.
  • Reddy added,”We are approaching Korean and other foreign agencies for required funds (state share).”
  • If things move as planned, the Visakhapatnam Metro would hopefully be chugging in 4 years.


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