Uncertainty looms large over Vijayawada Metro Rail

Vijayawada: The state government is in a rethink on one of the most prestigious projects in Andhra Pradesh capital region, Vijayawada Metro Rail project, in the backdrop of cancellation of tenders by DMRC (Delhi Metro Rail Corporation). Chief Minister N Chandrababu Naidu suggested that the officials study the project to know if there is a chance to reduce the project cost. Amaravati Metro Rail Corporation (AMRC) officials confirmed the Chief Minister’s observations on the project.

Highlights:

• State government is said to be reassessing the viability of the project in view of huge cost
• AMRC is unhappy with way DMRC is handling the project

According to sources, the state government is of the view that the project cost is too high and it is considering alternative plans. DMRC managing director Sreedharan is likely to meet the Chief Minister on June 7 during his visit to Vijayawada and he will explain recent developments, including cancellation of tenders. AMRC managing director N P Ramakrishna Reddy told The Hans India that they had no doubts about the implementation of the project as the state Cabinet had already approved it and the Chief Minister felt it was useful to Vijayawada.

However, AMRC officials are said to be not happy with the way the DMRC is handling Vijayawada Metro Rail project and they reportedly told expressed this to municipal administration minister P Narayana two days ago.

A senior AMRC official told The Hans India that the DMRC could not complete at least tender process for the last two years. “One of the major reasons for the delay in Vijayawada Metro Rail project is the way of handling of the project by DMRC. The state government has entrusted the responsibilities to DMRC though they are not functioning efficiently,” he said.

In these circumstances, some differences are seen between the officials of AMRC and DMRC over handling the project. In fact, the AMRC reportedly suggested finalisation of three financial tenders for metro project in the last month. But, ignoring the suggestion, the DMRC officials selected only two bids, L&T and Afcons Infrastructure, only. These two bids were also cancelled without prior information to AMRC. The DMRC sent report on cancellation after two days to AMRC.

On other hand, the Chief Minister and some higher ups of municipal administration felt that the cost of project has to be reviewed as it crossed Rs 7,000 crore which might not be viable. Corporate companies are not showing interest on the project and only three companies participated in tender process though the DMRC had invited global tenders and extended the duration to around four months to file the bids. Nationalised banks are also not enthusiastic towards financing
the project.

Though metro rail projects for Vijayawada-Guntur-Tenali Urban (VGT-UDA) area and Visakhapatnam were included in AP Reorganisation Act, the Union government is not actively considering the Vijayawada metro rail project, which is another major setback for the venture.