A Korean bank had offered to lend the money to the metro at an interest rate between 6.5% and 7%. And the repayment tenure of 20 years with 5 years moratorium also was given to the metro
Visakhapatnam: The Korea EXIM Bank has withdrawn its decision to grant financial assistance to establish Vizag Metro rail in Andhra Pradesh. The reason for the decision is unknown. On March 6, 2019, the Korean bank had decided to allow Rs 4,100 crore for the metro rail project.
Reports suggest that the Andhra Pradesh's Amaravati Metro Rail Corporation (AMRC) would be mostly approaching other global financial organisations like Asian Infrastructure Investment Bank (AIIB) and New Development Bank, formerly BRICS bank, seeking funds for the project.
Korean bank had offered to lend the money to the metro at an interest rate between 6.5% and 7%. And the repayment tenure of 20 years with five years moratorium also was given to the metro. AMRC had also appointed a financial advisor for this.
According to the earlier plans, AMRC was to grant the contract to the successful bidder by March this year and the work was expected to begin quickly afterwards but the bank's decision has made the metro in a standstill.
Sources said the metro had even shortlisted five firms and request for proposal had also been issued to them. These five firms were about to submit their technical and financial bids also. The shortlisted firms were Adani Group, Tatas, Shapoorji Pallonji Group, Essel Group and IL & FS.
Apparently the Andhra Pradesh state government advised AMRC to propose the project for funding to other organisations if so desired.
Last Updated Jul 5, 2019, 12:28 PM IST