Centre blames AP for Vizag metro delay

The minister recalled that the AP government had sent a proposal to the ministry in December 2015.
Image for representational purpose only. (File Photo)
Image for representational purpose only. (File Photo)

VISAKHAPATNAM: Even after seven years, the fate of the proposed Visakhapatnam Metro Rail Project has been hanging in the balance as the State is yet to submit a proposal to the Centre.

In a written reply to BJP MP GVL Narasimha Rao in the Rajya Sabha, Union Minister of State for Housing and Urban Affairs Kaushal Kishore on Monday said the AP government had not submitted a proposal for the project. “The State was asked to submit a revised proposal in September 2017, but nothing has materialised so far.”

The minister recalled that the AP government had sent a proposal to the ministry in December 2015. The Rs 12,725 crore metro rail project with a network of 42.55 km was to be implemented as a fully government-funded model having a 50:50 joint venture equity partnership of both the Central and State governments.

However, later in October 2016, the AP government altered the funding model to Public-Private Partnership (PPP) with two options: first, with a network of 34.44 km at a cost of Rs 9,736 crore, and second, a 42.54 km network, costing Rs 12,345 crore. Four months later in January 2017, the State government proposed to implement the project in PPP model at a cost of Rs 12,345 crore.

Minister Kishore said the Centre had requested the State government to re-submit the proposal for the project as per the Metro Rail Policy, in 2017. The AP government, however, had not submitted the proposal. Urban transport — an integral part of urban development — being a State subject, the formulation of proposals for metro rail projects with appropriate funding patterns, along with the preparation of a comprehensive mobility plan, alternative analysis report and detailed project report, were to be done by the respective State Governments, the minister explained.

Referring to different types of funding patterns under the Metro Rail Policy, 2017, Kishore said the Centre has been offering 20 per cent grant under the viability gap funding scheme for PPP projects. He added that the Andhra Pradesh government had not utilised the opportunity. The Centre has approved 23 metro rail projects since August 2017. The total cost of these projects is a staggering Rs 2.51 lakh crore, which would have Central government assistance. BJP MP Narasimha Rao opined: “Lack of interest on the part of the present YSRC and previous TDP governments to construct the Visakhapatnam Metro Rail Project is shocking and deplorable.”

Visakhapatnam, the lone megacity of Andhra Pradesh, required world-class infrastructure, but the successive State governments neglected the Port City, he said. The BJP MP further demanded action by the State government to build a world-class metro rail network in Visakhapatnam.

SPV set up in Oct 2015

Vizag metro rail project was first mooted by the TDP government in October 2015. A special purpose vehicle to execute the project was also set up. A proposal was made for a 70-km light metro in six corridors, and a modern tram in 60.20 km at a cost of Rs 8.330 crore in the city. As per TDP’s plan, the total metro rail network was 140 km from Anakapalle to Bhogapuram, where the international greenfield airport was proposed to be located.

Later, the YSRC government revised the proposal and decided that the modern tram system would be implemented for 60.20 km along four corridors.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com