Korea Exim Bank to fund the infrastructure for Vizag metro rail

The much-awaited Vizag metro rail project is likely to have its infrastructure funded by Korean Exim Bank. Reportedly, the bank has come forward to support the infrastructure cost of the state government’s share of 51 percent of the project, close to Rs 4200 crore.

As per a report by the Deccan Chronicle, 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.

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.

Earlier, the Amaravati Metro Rail Corporation Ltd (AMRC) has issued Request for Proposal to the five bidders of the Vizag metro rail 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, are the firms which submitted the bids.

In October last year, AMRC had released Request for Qualification (RfQ) for the development of the project, for which the companies had submitted their respective bids. Following this, the Monitoring and Evaluation Committee (MEC) had shortlisted all the five companies.

Earlier, a South Korean delegation had also met Chief Minister Chandrababu Naidu to express its willingness in extending infrastructure support to the metro rail project in the city of Vizag. Manufacturers of metro rail coaches, signalling system, and track developers constituted the South Korean delegation.

News Credits- Deccan Chronicle