The state government is differing with Union government’s new Metro Rail policy and is formulating its own innovative model for successful implementation of Metro Rail projects in Vijayawada and Visakhapatnam. The government is of belief that the new policy, which has mandated public-private partnership, will not work out for low-density populated cities (below 20 lakh population) and is aimed to decrease investment burden on Centre.
- Centre’s policy puts cost of civil works too in the ambit of private player
- State will bear cost of civil works under the PPP model
As the state government has prior information on Centre’s move towards new metro policy, Amaravati Metro Rail Corporation Ltd (AMRCL) has been working on a new model. But it is unsure on getting Centre’s assistance to the metro projects with the implementation of AP’s model.
Also Read: Metro Rail: 313 kms of Metro Rail Connectivity for nine cities by 2019
In the old policy, Centre and State governments grant 20 per cent each of total project cost and remaining 60 per cent had to be obtained from private financial institutes. “If we procure the 10 per cent funds (Centre’s part), we can implement metro projects as per our wish” said a senior officer.
“The proposed PPP model will not be success. Private companies will not come forward to take up metro projects under the PPP model as huge amount must be spent for civil works. The new policy is aimed only to cut Centre’s funding to metro projects. In this scenario, we are preparing a model in which the state government will bear cost of civil works” said Ramakrishna Reddy.
“Centre is of the view that states see the metro projects as prestige to them and send DPRs for low-density populated cities such as Bhopal, Indore and Patna ignoring viability of the projects. Centre’s new metro policy may resist such kind of proposals,” said Ramakrishna Reddy.