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Doubts over viability of Andhra metro rail project

VIJAYAWADA: Serious doubts are being raised over the economic viability of the metro rail project proposed for the VGTM-UDA region as it has just a population of 30 lakhs. The Centre, which has promised to take up the project in the Vijayawada-Guntur-Tenali-Mangalagiri region in the AP bifurcation bill, plans to complete it in four phases covering about 300 km. The VGTM-UDA has called for tenders to take up a detailed project report (DPR) study. The last date for submission of tenders is September 1. 

Even as the Centre has put the metro rail on a fast track, experts fear that the project may not be viable economically if more areas are not added to the proposed network. Incidentally, the state government is yet to decide on the new capital. 

The state government has hurriedly allowed VGTM-UDA to take up detailed project report study. The UDA is expected to spend about Rs 25 crore for 259 km metro rail route. It has proposed four sections for the metro project. The first phase is expected to cover the area between Gannavaram and Gollapudi. While the government is expected to spend about Rs 8 lakh per km of survey, it will require Rs 150 crore per km for laying of elevated metro route. 

The UDA called tenders for conducting DPR for the entire 259 km stretch even while proposing to take up only 49 km in the first phase. "When the viability of 49 km line itself is doubtful, taking up a survey for 259 km is nothing but criminal wastage of public money," said K Hanumantha Rao, a retired bank manager. According to officials, the passenger traffic in the existing city buses and train services connecting the city is not enough to bring in profits for the project. 

Vijayawada-Guntur-Tenali circular metro is one of the four sections proposed for metro rail project by UDA. "The daily traffic between Guntur and Vijayawada in buses is around 15,000," said Guntur regional manager M Rama Rao. Similarly, Guntur-Tenali traffic is 6,000 and Tenali-Vijayawada traffic is 5,000. 

According to experts, a metro train project will bring in sufficient revenue only if it has passenger traffic of about 50,000 daily. 

Although metro train for Vijayawada has been promised in anticipation of it getting the capital status, it will take a few years for the city population to cross 20 lakh. The combined population of VGM-UDA is about 30 lakh, said economic professor at ANU, LSN Prasad. He pointed that no metro train in the country has a total length of more than 200 km. Delhi's train link is just for 192 km. 

Citing the example of Nagpur metro for which Prime Minister Narendra Modi laid foundation stone on Thursday, experts said about 50 per cent of the Rs 9,000 crore project is being taken as loan while state and central governments shared 20 per cent each. 

The local civic body should bear the remaining 10 per cent. "This is the story of just 38km metro for city with population of 29 lakh. "It will be ideal to take up DPR after finalization of the capital location because new routes may come up once the capital is decided," said SCR Mazdoor union leader Swamy Charan. 

"We are taking up survey to tap central funds. What's wrong in it," asked VGTM UDA chairman V Srinivasa Reddy.

Source: TimesOfIndia

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