AMRC hopes for 100% aid for metro projects

AMRC hopes for 100% aid for metro projects

AMRC hopes for 100% aid for metro projectsCM raised the issue with Jaitley

The reiteration of the Central government’s commitment to deliver all promises made to Andhra Pradesh (A.P.) by Finance Minister Arun Jaitley in Parliament is considered as a positive signal that 100% Central assistance will be extended to the Amaravati and Visakhapatnam metro projects as per the request made by Chief Minister N. Chandrababu Naidu.

Mr. Naidu had stated in a letter to Mr. Jaitley in January 2016 that under Sec. 95 of the A.P. Reorganisation Act (APRA), the Central government is supposed to take appropriate fiscal measures, including the offer of tax incentives for industrial and economic development of the State and provide special financial support for the creation of infrastructure in the successor State of A.P.

It is in tune with the APRA that the Central government is expected to help in implementing the metro rail projects with renewed thrust.

Speaking to The Media, Amaravati Metro Rail Corporation (AMRC) Managing Director N.P. Ramakrishna Reddy said the CM had taken to the notice of Mr. Jaitley that since the Amaravati metro is being undertaken within the capital region according to Schedule 13 and Sections 93, 94 (1) and 94 (3), the Central government is under the obligation to provide special financial support to it being essential infrastructure for the new Capital city.

Modified proposal

Besides, A.P. has tweaked its original proposal of Amaravati metro as a medium project, to a light rail as per the Ministry of Urban Development’s suggestion. Subsequently, an international consortium led by French firm Systra started preparing the DPR for Amaravati metro and the AMRC tied up with KfW for 60 % funding of the project.

Excluding land and R&R components, the Amaravati and Visakhapatnam metro projects cost ₹ 6,000 crore and ₹10,600 crore. The State is also anticipating either reimbursement or exemption by the Centre of state taxes amounting to roughly ₹1,100 crore for the two projects combined.

Check Also

Two talented players as coaches

Two talented players as coaches

🔊 Listen to this When Bhaskar Pillai walked on to the lush green outfield at …