Visakhapatnam Metro Rail Project Moves Closer to Reality

The Centre has forwarded the Detailed Project Reports (DRPs) for the Visakhapatnam and Vijayawada Metro Rail projects for financial appraisal. This move is expected to accelerate the approval process for the long-awaited urban transport projects.

In the first phase, a combined network of 84.63 km is proposed across the two cities: the Visakhapatnam Metro with 46.23 km and an investment of Rs 11,498 crore, and the Vijayawada Metro with 38.40 km and an investment of Rs 10,118 crore, for an estimated investment of Rs 21,616 crore. The projects are expected to improve urban mobility, support economic growth in both cities, and reduce pressure on road transport.

The Metro Rail Impact on Visakhapatnam & Vijayawada

The creation of a corridor from Gannavaram in Vijayawada will strengthen public transport connectivity between the airport and the city’s main residential and commercial areas. The proposed metro corridor in Visakhapatnam will connect the Steel Plant with other key parts in the city, easing daily commuting for employees and residents alike. There is also a possibility that the city will show development, not only in one area, but new centres will be formed along the metro corridors.

Visakhapatnam is rapidly emerging as an important hub for major industrial, tourism, and IT development, and Vijayawada has been a key commercial, transport, and administrative centre in the state. The officials state the metro rail project will create new growth centres and encourage balanced urban development beyond existing commercial hubs.

The State’s Initiatives

With the formation of the coalition government in Andhra Pradesh, the DRPs for the metro projects were submitted to the Centre. After careful review and offering modifications, the Union Ministry of Housing and Urban Affairs has reportedly approved the financial appraisal.

The projects will be operated under the Joint Venture (JV) model. Under this arrangement, the Andhra Pradesh government and the Central government will each contribute 20% of the project cost, and the remaining 60% will be raised through loans from financial institutions. Several sources indicate that funding will be sourced through foreign banks, which have shown interest in the project.

The Andhra Pradesh government has granted in-principle approval to the Metro Rail Corporation to initiate the tendering process for the works covering up to 40% of the project cost.

After the financial appraisal of the DRPs is completed and the Centre grants final approval, groundwork for the first phase of construction is expected to begin.

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