Vijayawada Metro gets the much needed funding!

A four member team from Japan International Co-operation Agency (JICA) visited the proposed sites of Vijayawada Metro Project. JICA is offering 4200 Crore as Loan to the project and the loan is likely to be released by July. The loan will come up with a moratorium of 10 years and it has to be repaid in 30 years.

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The state government will very soon release 150 Crore for the land acquisition for the project which would be completed at the earliest to kick-start the metro rail project works. The state government is looking at 5000 Crore for the project but JICA has not financed more than Rs. 4,000 crore to this kind of project elsewhere in the world.

JICA funding will come as a bilateral loan with a fixed interest of 0.30 per cent. The government also formed a Special Purpose Vehicle called AMRC which has been formed to implement the project with the help from the consultants — the Delhi Metro Rail Corporation (DMRC).