With the latest cabinet meeting in Amaravati coming to an end, it has been reported that the ministers have given a green signal to the metro rail project in Visakhapatnam.
Earlier, it was reported that Korean Exim Bank came forward to support the infrastructure cost of the state government’s share of 51 percent of the project, close to Rs 4200 crore. Of the various financial institutions approached by the Amaravati Metro Rail Corporation Ltd (AMRC), the Korean Exim Bank came forth with the least rate of interest. The Korean Exim Bank will lend the finance at an interest rate of 6.5 percent to 7 percent for a period of 20 years.
Three routes were identified to operate the metro rail in Visakhapatnam. While the first route is expected to be from Gajuwaka to Kommadi, the remaining two metro lines would be constructed along the routes of Gurudwara-Old Post Office and Thatichetlapalem-Chinna Waltair respectively.
It was reported that of the total project amount, Amaravati Metro Rail Corporation (AMRC) will be bearing 51% while the remaining will be contributed by Visakhapatnam Urban Development Authority (VUDA) and under the PPP partnership model.
The Amaravati Metro Rail Corporation Ltd (AMRC) had issued Request for Proposal to the five bidders of the project. Adani Enterprises Limited, Gurgaon, TRIL Urban Transport Private Limited, Mumbai, Shapoorji Pallonji, and Company Private Limited, Mumbai, ESSEL Infraprojects Limited, Mumbai, IL&FS Rail Limited, Mumbai, were the firms which submitted the bids.
The cabinet meeting also witnessed crucial decisions being made on Kadapa Steel Plant and Anna Canteens.