JICA’s refusal to fund Vijayawada Metro has turned into a blessing in disguise for the state. As it so happens, European Investment Bank is keen on funding this project and the loan interest value will be 30% less than what JICA had offered for the project.
This is a huge relief for the Cash-Strapped Andhra Pradesh. Moreover, the loans from JICA will come with a condition that the necessary infrastructure of the project should be procured from Japanese companies. But with EIB Bank Loan, the project will use ‘Make in India’ coaches which will be again cost effective. The entire project will cost 13,488 Crore. The state and central governments will pitch in 20% each of the total amount required and the remaining 60% are to be obtained as loans.
Delhi Metro Rail Corporation (DMRC) which executed several Metro Rail Projects in the company will be the consultant for this project. The land acquisition of the project will be completed in four months.
