Visakhapatnam (Metro Rail News): The Export-Import Bank of Korea (KEXIM) has conveyed their inability to extend the financial assistance for the nearly Rs 8,300 crore Vizag metro rail project. Replying to an unstarred question in Parliament, finance minister Nirmala Sitharaman said the state government was therefore advised to award the project to other bilateral/multilateral agencies if desired.
The state government has planned to allocate 250 acres of land to Amaravati Metro Rail Corporation (AMRC), apart from the land needed for the project, to commercially develop it and use the revenue earned from it to repay the loan from the funding agency.
The proposed borrowing from external funding agencies is towards the investment of the 52% share of the state government in the project. The state government will give a sovereign guarantee for the loan on behalf of the AMRC. After the official export credit agency of South Korea showed its interest in financing the project, the TDP government had initiated discussions with it and was about to conclude the process. But with this new development, the state government will have to look for a new lender if they want to take the project forward.
Apart from the financing aspect, there are several doubts over the future of the project as the new state government has asked officials to put all projects on the planning stage on hold for the time being.
As per the predetermined schedule, the name of the successful bidder of the metro project should have been announced even before the general elections.
According to sources, the metro officials have to first apprise the state government of all the developments of the metro project and tendering process