Visakhapatnam: The much-awaited Vizag metro rail project is likely to have its infrastructure funded by Korean Exim Bank. Reportedly, the bank has come forward to support the infrastructure cost of the state government’s share of 51 percent of the project, close to Rs 4200 crore.
As per a report by the Deccan Chronicle, the Korean Exim Bank will lend the finance at an interest rate of 6.5 percent to 7 percent for a period of 20 years.
Of the various financial institutions approached by the Amaravati Metro Rail Corporation Ltd (AMRC), the Korean Exim Bank came forth with the least rate of interest.
In October last year, AMRC had released Request for Qualification (RfQ) for the development of the project, for which the companies had submitted their respective bids. On the basis of this, the Monitoring and Evaluation Committee (MEC) had shortlisted all the five companies.
Vizag metro is a rapid transit system in Visakhapatnam, Andra Pradesh. The system is proposed to reduce traffic as was as providing a good public transport system in the city which is the largest city and the main hub of economic activity for Andra Pradesh.
The metro rail project was planned by Great Vishakhapatnam Municipal corporation (GVMC). To calm down the traffic condition on the streets.
Earlier, a South Korean delegation had also met Chief Minister Chandrababu Naidu to express its willingness in extending infrastructure support to the metro rail project in the city of Vizag. And the manufacturers of metro rail coaches, signaling system, and track developers constituted the South Korean delegation.