First in India Attempt by AP Govt

Cash Strapped Andhra Pradesh government is exploring different ways to fund the prestigious metro rail projects in Vijayawada and Visakhpatnam. The state government is in consultation with UK-based non-profitable organisation, Climate Bonds Initiative, which raises money for non-polluting projects.

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The state government is keen on using for the Metro Projects since metro rail project utilises green energy. This is the first time in India that a state government has sought to invoke the green norms for funding of metro rail projects. The government will very soon float green bonds in the open market with the help of the UK-based body.

Earlier JICA offered to fund for Vijayawada Metro Rail Project but the state government rejected after the International Funding Agency came up with a set of conditions. The state government tried its level best to convince the central government to give 100% funding for these projects but could not.