AP Struggles for Vizag Metro Funding

Cash-Strapped Andhra Pradesh seems to be struggling to secure funding for the proposed Metro Rail Project in Vishakapatnam. Central government had already indicated that the project is likely to take up through the public-private-partnership mode. As per the AP Reorganisation Act 2014, the Centre should support both the projects while the state government contributes its share.

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While in the case of Vijayawada Metro, Center agreed for investing its share and the state government approached the Japan International Cooperation Agency (JICA) for loan. Vijayawada is going to be declared as a Metropolitan city as it is a condition for loan from JICA. Vishakapatnam will also have to get the status now.

The projected cost of Vijayawada metro was Rs 8,642 crore. For Visakhapatnam, the cost was 13,488 Crore including the land acquistion. Getting a private partner for Visakhapatnam is a Herculean task as the cost involved is high. On the other side, Center did not even commit for its share in Vizag Metro sitting on the DPR.