Vijayawada, July 25, 2025 – In a significant boost to urban infrastructure, the Andhra Pradesh government has approved tenders worth ₹21,616 crore for metro rail projects in Vijayawada and Visakhapatnam, marking a major step toward modernizing public transportation in the state. The announcement was made on Friday, with ₹10,118 crore allocated for the Vijayawada Metro and ₹11,498 crore for the Visakhapatnam Metro. These projects are set to enhance connectivity, reduce traffic congestion, and promote sustainable urban development in two of Andhra Pradesh’s key cities.
Project Details and Funding
The metro rail projects will be executed under a 50:50 cost-sharing arrangement between the Central and State governments, ensuring a collaborative approach to funding and implementation. The Visakhapatnam Metropolitan Region Development Authority (VMRDA) will contribute ₹4,101 crore toward the Visakhapatnam Metro, while the Capital Region Development Authority (CRDA) will allocate ₹3,497 crore for the Vijayawada Metro. The tenders, covering 40% of the total project cost initially, are expected to kickstart construction, with further phases to follow upon approval from the Ministry of Housing and Urban Affairs.
The Visakhapatnam Metro, spanning 76.9 km across three corridors with approximately 54 stations, will connect key areas of the port city. Phase I will cover 46.23 km, including corridors from Steel Plant Junction to Kommadi (34.4 km), Gurudwara to Old Post Office (5.08 km), and Thatichetlapalem to Chinna Waltair (6.75 km), with 42 stations. The project requires 99.75 acres of land, estimated at ₹882 crore, with a mix of state, central, and private land acquisitions.
The Vijayawada Metro, covering 38.4 km in Phase I, will feature two corridors: Gannavaram to Pandit Nehru Bus Station (PNBS) and PNBS to Penamaluru, with 34 stations. The project includes a 4.7 km double-decker system from Ramavarappadu Ring Road to Nidamanuru, designed to optimize space in the city. Land acquisition for this project, estimated at ₹1,152 crore, will cover 91 acres. Phase II will include a third corridor connecting PNBS to Amaravati’s Reservoir Station.
Strategic Importance and Economic Impact
The Andhra Pradesh cabinet, chaired by Chief Minister N. Chandrababu Naidu, approved these projects as part of a broader ₹80,000 crore investment push aimed at positioning the state as a preferred destination for investors. The metro projects are expected to generate 1.5 lakh jobs, significantly boosting employment opportunities. Information and Public Relations Minister K. Parthasarathy emphasized that these initiatives will transform Andhra Pradesh’s urban transportation landscape and enhance its economic prospects.
The projects align with the state’s vision of sustainable development. The Andhra Pradesh Metro Rail Corporation (APMRCL), headquartered in Vijayawada, is incorporating eco-friendly designs targeting near-zero carbon emissions, as highlighted in recent posts on X. The double-decker metro model, inspired by successful implementations in cities like Nagpur, will optimize land use, particularly in Visakhapatnam, where the corridor along the national highway will minimize private land acquisition.
Implementation and Next Steps
The state government has already approved the Detailed Project Reports (DPRs) for both projects, which were submitted to the Central government in December 2024. The Centre has sanctioned funds for updating the Comprehensive Mobility Plans (CMPs), with SYSTRA MVA Consulting appointed to refine these plans. The Visakhapatnam Metro will follow a Public-Private Partnership (PPP) model, with 40% funding from the Centre and 60% from private developers, ensuring efficient execution.
APMRCL has also issued a Request for Proposal (RFP) for consultants to prepare DPRs for double-decker flyovers in both cities, with costs shared between APMRCL and the National Highways Authority of India (NHAI). The deadline for submitting these proposals is May 14, 2025, with completion expected within six weeks of the Letter of Acceptance.
Challenges and Past Delays
The metro projects have faced hurdles in the past. Tenders for the Visakhapatnam Metro were initially scheduled before the 2019 elections but were delayed due to financial and administrative issues. The YSR Congress government’s failure to finalize tenders further stalled progress, as noted by Municipal Administration and Urban Development Minister P. Narayana. However, with Chief Minister Naidu’s renewed push and discussions with the Centre, including submissions to the Minister for Railways and Prime Minister Narendra Modi, the projects are now on a fast track.
Future Prospects
The Vijayawada and Visakhapatnam metro projects are poised to redefine urban mobility in Andhra Pradesh. By improving connectivity and reducing reliance on private vehicles, these initiatives will alleviate traffic congestion and promote sustainable transport solutions. The state government aims to complete the projects within the next four years, with Naidu emphasizing the need for swift execution.
As Andhra Pradesh moves forward with these transformative projects, the metro rail systems are expected to not only enhance the quality of life for residents but also position Vijayawada and Visakhapatnam as modern urban hubs. The state’s commitment to infrastructure development, coupled with strategic partnerships, sets a promising precedent for future growth.
