Centre moves DPRs for appraisal; first phase covers 84.63 km
The Central government has forwarded the Detailed Project Reports (DPRs) for the proposed metro systems in Visakhapatnam and Vijayawada to the concerned division for financial appraisal, the state government said on Monday. The combined first-phase plan envisages a metro network of 84.63 kilometres across the two cities at an estimated cost of ₹21,616 crore.
According to the state-administered release, the Visakhapatnam component includes a corridor connecting the city’s Steel Plant to major urban nodes, intended to facilitate travel for employees and the general public. In Vijayawada, a corridor from Gannavaram is proposed to improve connectivity between the airport and the city’s principal residential and commercial areas.
Funding model and next steps
The projects are planned to be implemented under a joint-venture (JV) model. Under this arrangement, both the Union and the state governments would each contribute 20% of the project cost, while the remaining 60% is expected to be raised through loans from financial institutions. The release said some foreign banks have expressed interest in extending loans for the projects.
- Project length (phase 1): 84.63 km (both cities combined)
- Estimated cost: ₹21,616 crore
- Funding share: Centre 20%, State 20%, Financial institutions 60%
- Procurement: In-principle approval granted to initiate tendering for up to 40% of project cost
"Following some objections and suggestions, the Ministry of Housing and Urban Affairs gave its nod for financial appraisal," the state release said.
Procurement and financial appraisal
The Ministry of Housing and Urban Affairs (MoHUA) reviewed the DPRs and, after raising certain observations, has cleared them for financial appraisal, the statement added. The government has already given in-principle approval to the metro rail corporation to commence the tendering process for up to 40% of the project cost.
If the financial appraisal concludes favourably and central approvals follow, the projects would move to procurement and implementation stages. The JV structure means the central and state governments will need to firm up budgetary allocations and lenders will have to agree loan terms before major contracts are awarded.
Local impact and economic rationale
Visakhapatnam is described in the release as an emerging hub for industry, IT and tourism. The introduction of metro services is projected to reduce road congestion, improve commuting times for workers — particularly those travelling to the Steel Plant corridor — and stimulate economic activity along proposed routes. The statement also forecast that development could decentralise from existing urban centres, with new growth nodes likely to emerge along metro corridors.
| Item | Detail |
|---|---|
| Total length (phase 1) | 84.63 km (Visakhapatnam + Vijayawada) |
| Estimated cost | ₹21,616 crore |
| Central share | 20% |
| State share | 20% |
| Debt financing | 60% from financial institutions (including interested foreign banks) |
For commuters in Visakhapatnam, the immediate consequence would be planning and public consultations as project timelines and alignments are refined. For local industry and real estate, the corridors—if implemented as proposed—could raise accessibility and land values along the routes, though exact outcomes will depend on final alignments, station locations and integration with existing public transport.
Unresolved items
The statement notes that the DPRs were modified in response to MoHUA observations before being cleared for appraisal. Specifics of those objections, the detailed station list, construction timelines, land acquisition plans and the outcome of lender negotiations were not disclosed in the release. These elements will determine how quickly the projects move from appraisal to execution.
With central financial appraisal now under way, stakeholders in Visakhapatnam will watch for further notifications from the metro rail corporation and government departments detailing the procurement schedule, detailed alignments and projected commencement dates.
