Sunday, July 27, 2025

Lack of Central funding delays AP’s port, metro projects

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PNS|Vijayawada

Eleven years after the bifurcation of Andhra Pradesh, key infrastructure projects such as the Dugarajapatnam Port and metro rail networks in Visakhapatnam and Vijayawada remain stalled.
While some educational institutions listed under Schedule 13 of the Andhra Pradesh Reorganisation Act have been established and minor progress has been made on revenue deficit grants, major projects continue to progress at a snail’s pace.

In response to an RTI query from Inaganti Ravi Kumar, the Centre outlined the status of the stalled port and metro projects. As per the Act, Dugarajapatnam was to host a major port with Phase 1 slated for completion by 2018 at an estimated cost of Rs 5,000–6,000 crore. However, NITI Aayog raised concerns due to the presence of nearby underutilised ports like Krishnapatnam and Ennore.

The previous YSRCP government had proposed a major port at Ramayapatnam instead and sought central funding. However, a February 2020 state notification designated it a non-major port, making it ineligible under the 2014 Act. The Centre stated that an amendment to the Act would be required to fund it.

Between 2021 and 2024, the state repeatedly requested Rs 4,992 crore, but the Centre maintained that Ramayapatnam should not be reclassified. The matter was referred to the Union Finance Ministry in February 2024, with no response so far. Meanwhile, a fresh review of Dugarajapatnam took place in July 2024, and the Ministry of Ports and Shipping asked the state to submit a techno-economic feasibility report within three months.

The metro rail projects face similar delays. Under the 2017 Metro Policy, the state is responsible for preparing financial and mobility plans along with Detailed Project Reports (DPRs). Andhra Pradesh submitted proposals for Visakhapatnam and Vijayawada in 2024, but the Centre pointed out that the DPRs were outdated and asked for revised documents and updated mobility plans, which are yet to be provided.

No central funding has been released so far. The AP Metro Rail Corporation stated that the Vijayawada Metro, estimated at Rs 11,009 crore, is in the finalisation stage, and Rs 18.5 crore has been spent by both governments over the past decade.

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