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Visakhapatnam and Vijayawada metro projects open for joint venture bids

#Taxation & Finance News#Infrastructure#India#Andhra Pradesh#Visakhapatnam
Last Updated : 26th Sep, 2025
Synopsis

The Andhra Pradesh Metro Rail Corporation (APMRC) has authorized joint venture (JV) participation in the International Competitive Bidding (ICB) tenders for Phase 1 of the Visakhapatnam and Vijayawada metro rail projects. This move aims to encourage wider participation and expedite project completion. The Phase 1 tenders cover 46.23 km in Visakhapatnam and 38 km in Vijayawada, accounting for 40% of each project's cost and focusing on civil works. The APMRC has set the tender submission deadlines for Visakhapatnam and Vijayawada metro projects as October 10 and October 14, respectively, with no plans for extensions. The metro projects are expected to be completed within 35 to 40 months and become operational by 2028.

The Andhra Pradesh Metro Rail Corporation (APMRC) has recently approved joint venture (JV) participation in the International Competitive Bidding (ICB) tenders for Phase 1 of the Visakhapatnam and Vijayawada metro rail projects. This decision allows up to three contractors to form a JV and submit a single bid, thereby encouraging wider participation and fostering healthy competition. However, APMRC has declined bidders' requests to divide the metro project works into multiple packages, as proposed during the pre-bid meeting. The corporation believes that splitting the project could lead to delays and increased costs, as observed in other metro projects across the country.


Phase 1 of the Visakhapatnam metro project spans 46.23 km, while the Vijayawada metro project covers 38 km. These phases account for 40% of each project's total cost and primarily involve civil works. The APMRC has set the tender submission deadlines for Visakhapatnam and Vijayawada metro projects as October 10 and October 14, respectively, with no plans for extensions. The metro projects are expected to be completed within 35 to 40 months and become operational by 2028.

In December 2024, the Andhra Pradesh government approved the first phases of metro rail projects for Visakhapatnam and Vijayawada, with a total estimated cost of INR 22,507 crore. The funding includes INR 11,498 crore for Visakhapatnam and INR 11,009 crore for Vijayawada. The projects are being implemented as joint ventures with the Centre, with each contributing 20% of the costs, while the remaining 60% is financed through foreign bank soft loans backed by central guarantees. The APMRC has already issued a tender notification for Visakhapatnam's Phase 1, and Vijayawada's tender is expected to follow shortly.

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