Central Government Accepts Metro Rail Project Funded In External Aid

Central Government Accepts Metro Rail Project Funded In External Aid

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The State Government authorities is pushing the burden of Visakhapatnam and Vijayawada Metro Rail Projects cost on to the Central Government, project should be funded under Special Package provided. The state and central governments have 20% each equity in both the projects and the external aid component on both the projects is over Rs 10,000 crore.

It’s known that the Finance Ministry had agreed to bear 90% of the Externally Aided Projects of the state for the next 5 years under the Special Package. These initiatives are to be covered under special package now. 90 percent of the loan taken from an external company shall be paid back by the Government of India and only the remaining 10 % is expected to be paid by the Andhra Pradesh State government.

As of now, the State government has already released 300 crores for the land acquisition for Vijayawada Metro‘s first corridor. The Special Package will come useful for the cash-strapped state to execute both these projects on a war footing. On the opposite aspect, the center will very quickly give the legal sanctity to the project.