Visakhapatnam: Finally, here is some good news for Vizagites to rejoice over as the Union government has agreed to go ahead with the Vizag Metro Rail project. However, the project would come up in a public-private partnership mode as against the Union government’s proposal of providing 100 per cent equity as promised during the bifurcation. Citing concerns over financial viability of the project, the Union government relegated it to the backburner for about eight months since the state Cabinet approved the Detailed Project Report prepared by the Delhi Metro Rail Corporation (DMRC) for the Vizag Metro Rail project.

It is learnt that the Union government has finally agreed to go under PPP mode after repeated pleas from the state government. While the State and Union governments would contribute 20 per cent equity each, the private investment would form 60 per cent equity of the cost of the project. Managing Director of Amaravati Metro Rail Corporation Limited N. Ramakrishna Reddy, who is also acting in-charge for the Vizag Metro project, informed that they would take the project further in PPP mode and said that he received official communication from the Union government for the same.

Mr Reddy further said that it would take about four years to complete the project. Consisting of three corridors, estimates for the about 42.5 km long Vizag Metro project were pegged at about Rs 13,500 crore. Funding for this massive project is also a concern as in a recent letter finance minister Arun Jaitley has agreed to extend only 20 per cent equity of the project. The state government had earlier sought the Union government’s approval to avail a loan for `6,371 crore from Japan International Cooperative Agency, which is yet to be sanctioned.

Speaking to this correspondent, a GVMC official informed that Mr Reddy stopped by the collectorate to discuss the project details with district collector Pravin Kumar. Mr Reddy asked the officials to earmark some lands in the city to construct depots and offices for the Vizag Metro Project. The government may fund the viability gap to make the project feasible, he added. The project work, which will be started in 2017, is expected to be completed by 2021. The officials would first undertake the Madhurawada to Gajuwaka corridor work.