The Vijayawada Metro Rail Project sees a financial push. AP state government has now finalized a major chunk of investment for the construction of two corridors of 26.03 km Vijayawada Metro Rail Project .
The Special Purpose Vehicle – Amaravati Metro Rail Corporation Ltd., that has been formed to implement the project at a cost of Rs.6,769 crore has now prepared a preliminary project report for bilateral financial cooperation. This report has been outlined with the help from the consultants who are a part of Delhi Metro Rail Corporation.
Internal sources confirm that while the maximum equity of Union government and Andhra Pradesh government is at 20 per cent each which works out to Rs.1,200 crore, the GoI’s share will be Rs.866 crore and that of State government will be another Rs.866 crore. The project will also get a bilateral loan of Rs.3,600 crore from the Japanese International Cooperation Agency (JICA) at a fixed interest of 0.30 per cent.
The Metro project will also get interest free subordinate loan of Rs. 333.5 crore from GoI and Rs.1,102.5 crore from AP Government. The bilateral loan would that has been finalized will get a formal debt sustainability clearance from the Department of Expenditure for State sector projects, as the JICA loan is serviceable at 0.3 per cent, going by the information.
A year-wise physical and financial target plan have also been prepared with verifiable target indicators. The target plan should also include year-wise utilization of proposed bilateral development assistance.
Going by the actual targets, two per cent of the physical work would be completed by 2015-16 at a cost of Rs.143 crore.
The remaining year-wise physical and financial targets for the Vijayawada Metro are as follows:
2016-17 : 15 per cent, financial target- Rs.771 crore and bilateral development assistance- Rs.221 crore;
2017-18: 30 per cent, Rs.1,839.5 crore and Rs.600 crore;
2018-19: 30 per cent, Rs.2,229 crore and Rs.1,442 cr development assistance;
2019-20- 12 per cent, Rs.1,049 cr and Rs.600 cr
2020-21 – 5 per cent, Rs.356 crore and 356 crore;
2021-22- 6 per cent, Rs.381 crore and Rs.381 cr.
The project will need a land acquisition of 31 hectares of land, including government land of 1.5 hectares and private land of 29.44 hectares. 77 families are likely to be affected and the cost of resettlement and rehabilitation is expected to at Rs.46.73 crore.
Sources also confirm that the project will be carried out with a minimal impact, where 60 trees to be felled and it will generate the additional employment during construction and operation.
The final elevated Metro system is estimated to serve target population of 22 lakh by 2018 since it has been brought under the Capital Region Development area of AP.