APMRCL accelerating efforts to secure
low-interest loans for both projects
PNS|Vijayawada
In a major development, several international financial institutions have expressed interest in funding the Vijayawada and Visakhapatnam Metro Rail projects, with estimated funding requirements totalling 12,000 crore. The Andhra Pradesh Metro Rail Corporation Limited (APMRCL) is accelerating its efforts to secure low-interest loans for both projects. APMRCL Managing Director Ramakrishna Reddy has held discussions with representatives from the Asian Infrastructure Investment Bank (AIIB), including officials Santosh and Pascal Russel, at the corporation’s office in Vijayawada. Prior to the meeting, the AIIB team conducted a field inspection of proposed metro corridors in Vijayawada, including the 26-km stretch from Pandit Nehru Bus Station (PNBS) to Gannavaram and the 12-km corridor from PNBS to Penamaluru. Following the inspection, AIIB representatives expressed keen interest in offering financial support for the project. According to initial estimates, the Visakhapatnam Metro requires funding of around6,100 crore and the Vijayawada Metro needs approximately `5,900 crore. APMRCL is currently in discussions with multiple foreign banks that offer low-interest and long-term financing, including KfW (Germany), AFD (France), AIIB (China), JICA (Japan), ADB (Asian Development Bank), NDB (New Development Bank) and World Bank.
These banks have shown interest in supporting Andhra Pradesh’s urban transport infrastructure. APMRCL MD Ramakrishna Reddy confirmed that further consultations will be held after identifying banks offering the most favourable terms, both in terms of interest rates and project facilitation.
Foreign bank representatives are also expected to hold talks with the Central and State governments shortly to formalise the funding arrangements.
In parallel, the APMRCL has already issued tender notifications for appointing general consultants for both metro projects, signalling swift progress toward execution. The corporation aims to ensure both metro systems are developed efficiently and with international cooperation.
