calender_icon.png 9 September, 2025 | 7:41 AM

AP Govt defers Metro Rail tenders following contractors’ requests

09-09-2025 12:00:00 AM

Metro India News | AMARAVATI

The Andhra Pradesh government has postponed tender dates for the first phase of the Visakhapatnam and Vijayawada Metro Rail projects after contractors raised several concerns during a recent pre-bidding meeting.

Announcing the decision, AP Metro Rail Corporation Managing Director Ramakrishna Reddy said the Visakhapatnam Metro tender, originally scheduled for September, has been rescheduled to October 7, while the Vijayawada Metro tender will now take place on October 14.

During the pre-bid consultations, several contractors requested flexibility in the bidding process. They urged the government to permit joint venture participation and to split the project works into multiple packages rather than calling tenders under a single-package model. According to officials, most contractors felt that dividing the works would allow wider participation and create competitive opportunities. The Metro Rail Corporation has decided to consider these appeals, and further discussions will be held in the board meeting before finalizing the next steps.

The combined cost of the first phase of the Metro projects in Visakhapatnam and Vijayawada has been estimated at Rs.21,616 crore, with a target of completing the works within three years. Funding will follow a shared model, 20% from the state government, 20% from the Centre, and the remaining 60% as loans from international banks at concessional interest rates. The state’s share will be mobilized through the Visakhapatnam Municipal Corporation and the Capital Region Development Authority (CRDA).

Officials emphasized that the AP Metro projects will adopt advanced designs not seen in other Indian cities. Unlike existing metro systems where overhead power lines are the norm, the Andhra Pradesh metros will feature a no-overhead line system. Inspired by Denmark’s model, a two-car system will initially be introduced to address urban traffic, with the flexibility to expand into three-car and four-car trains as passenger demand increases.

To ensure global standards in execution, the AP government has entered into agreements with Systra and Typsa consultancy firms for supervision, technical support, and project monitoring.