Andhra Pradesh mulls seeking Central aid for metro

Project as per revised DPR to cost Rs 20,000 crore; Systra-Rites consortium to make presentation on April 29
Image used for representation (File Photo | PTI)
Image used for representation (File Photo | PTI)

VIJAYAWADA: Even as half of the time (five years) for the implementation of the AP Reorganisation Act, 2014, is up, uncertainty still looms large on the Vijayawada (light) metro rail project. As the State is on the cusp of seeing its second term of governance soon, the cash-strapped State government is mulling submitting the revised DPR of the project, which is expected to cost Rs 20,000 crore, to the Centre as per the new metro rail policy. Since the other options of funding such as PPP, through external agencies and others are also being examined, a decision on the same would be taken by the next State Cabinet.

Though the State government had submitted a DPR in 2015, the Centre, in 2017, directed the State officials to submit a fresh DPR as per the new metro rail policy. The Centre had a reason to seek a fresh report on the project as it felt a Rs 8,000-crore metro in city like Vijayawada, which has less than 15 lakh population, was financially unviable. However, the State government had decided to not send a revised DPR as per the new policy and started exploring other options of funding, especially after the project’s execution became one of the bone of contentions between the State and the Centre.

To make it financially viable and also to have wider connectivity, the Amaravati Metro Rail Corporation (AMRC) tweaked the original plan and moved to light metro from medium metro. As per the first DPR, the project was only 26-km-long and was proposed on two corridors -- Pandit Nehru Bus Station (PNBS) to Nidamanuru and PNBS to Penamaluru -- in Vijayawada. But, according to the new DPR, which is likely to be finalised next month, there will be three corridors -- Vijayawada airport to Amaravati, Penamaluru to PNBS, and Railway Station to Jakkampudi -- spread across 75 kms.

While the earlier planned metro project construction was estimated to cost Rs 250 crore per km, the proposed new light metro is expected to cost around Rs 200 crore per km, taking its total estimated cost to Rs 20,000 crore. With this, the State government, which is facing a financial crunch, is once again considering the option of seeking the Centre’s support. “Once the DPR is frozen, we will send it for the approval of the State Cabinet, whenever it is formed, which will tell us if we have to go for central funding or PPP or other means of fund mobilisation. However, we will also give another try at getting central funding by submitting the DPR as per the new metro rail policy. But, the final decision would be in the hands of the heads of next government,” a top-ranking official told TNIE, observing that the fate of the project would depend on the priorities of the next government.

However, the official also exuded confidence that the project will see the light of the day soon. “If the Centre gives a green signal to the project, there will be no stopping. We will get a clarity once the DPR is finalised,” the official observed.

After Systra-Rites consortium makes the presentation on April 29, it would be forwarded to the steering committee for final scrutiny. From there, it would be sent to the State govt.

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