Vijayawada: Amaravati Metro Rail Corporation (AMRC) had entered into an agreement with the Delhi Metro Rail Corporation (DMRC) for execution of the metro rail project. The officials of AMRC and DMRC signed the agreement for a period of four years on Monday.
As per the agreement, the AMRC is the owner and administrator of the local metro rail project while the DMRC is the executing agency. The DMRC will prepare design, call for global tenders, select contractor and sign an agreement with contractor. The DMRC also will be responsible for supervision and management of works. Finally, it has to complete and handover the project in four years period.
Meanwhile, the AMRC has decided to complete the construction of a station at Nidamanuru of Vijayawada rural mandal by February, 2019, to conduct first trail run of metro rail through Eluru road corridor.
Speaking to The Hans India over phone, AMRC MD N Ramakrishna Reddy said that the AMRC will complete one of the priority corridors for metro rail from Pundit Nehru Bus Station to Nidamanuru village by February, 2019.
The State government released Rs 300 crore for land acquisition for the project recently. It is learnt that the district administration assured AMRC that they will complete land acquisition process within 2 to 3 months duration.
Ramakrishna said that they were confident of going ahead with the project with the State government releasing funds for land acquisition.However, the tenders called by AMRC in the past were cancelled by the agency because of scarcity of funds. The agency had called for tenders in advance before reaching an agreement with DMRC believing that the Central government would release funds for the project. With the Centre’s indifferent stand towards the project as it believes that the project is not economically viable, no funds were released. As result, DMRC have to call for fresh tenders now.
Another jolt to the project is the Japan International Cooperation Agency (JICA) cancelled its proposal for funding the metro rail project. The JICA offered a loan of Rs 4,200 crore with fixed interest of 0.3 per cent for the project in April.
According to officials of metro rail corporation, JICA had laid down conditions that the amount will have to be repaid in the form of Yen currency which may prove to be detrimental for AMRC.
Another condition was the machinery and material must be purchased from JICA which would cost nearly 30 per cent of the total loan amount. Ramakrishna said that World Bank, AFD and other financial institutions are interested in funding the project and added that they are exploring all possibilities.