JICA to provide Rs. 3,600 cr. for Vijayawada Metro project

Andhra Pradesh government has finalised a major chunk of financial component 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 prepared a preliminary project report for bilateral financial cooperation with the help from the consultants Delhi Metro Rail Corporation.

Sources said 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 get a bilateral loan of Rs.3,600 crore from Japanese International Cooperation Agency 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 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, sources added.

A detailed year-wise physical and financial target plan were also prepared with verifiable target indicators. The target plan should also include year-wise utilisation of proposed bilateral development assistance.

According to the target plan, 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 pc, Rs.2,229 crore and Rs.1,442 cr development assistance; 2019-20- 12 pc, Rs.1,049 cr and Rs.600 cr and 2020-21 – 5 pc, Rs.356 crore and 356 crore; 2021-22- 6 pc, Rs.381 crore and Rs.381 cr.

The project will overall needs land acquisition of 31 hectares of land including government land of 1.5 hectares and private land of 29.44 hectares and 77 families are likely to be affected and the cost of resettlement and rehabilitation is expected at Rs.46.73 crore.

Sources assert that the project will be carried out in such a way so as to cause minimum affect with about 60 trees to be felled and it will generate the additional employment during construction and operation.

The all 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.

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Printable version | Feb 28, 2021 10:03:01 AM | https://www.thehindu.com/news/cities/Hyderabad/jica-to-provide-rs-3600-cr-for-vijayawada-metro-project/article7968497.ece

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