The proposed metro rail project for both Vijayawada and
Visakhapatnam has now moved forward with the central government giving a
green signal for the AP government to seek international funds for the
ambitious work.
The Japan International
Cooperation Agency (JICA) would be funding these metro rail projects. A
JICA team is currently in Vijayawada for gaining a first hand assessment
of this project. Sources say that the terms and conditions of JICA are
borrower-friendly.
The AP state government can
repay this loan over a period of around 30 to 40 years. There will be a
moratorium applicable during first 10 years while rate of interest is
just three per cent. JICA has already funded major metro rail projects
in Delhi, Kolkata, Bangalore, and Chennai.
AP
government will be contributing around 20 per cent and the remaining 60
per cent of funds will be from loans. Delhi Metro Rail Corporation
(DMRC) was entrusted with the responsibility of monitoring these metro
rail projects.
