First global tender launched for construction of Visakhapatnam Metro Rail Project

Vijayawada, India (Metro Rail Today): In a major development for urban infrastructure in Andhra Pradesh, the Andhra Pradesh Metro Rail Corporation Limited (APMRCL) has issued an international tender for the Engineering, Design, and Construction of a significant portion of the Visakhapatnam Metro Rail Project Phase 1, pegged at an estimated cost of ₹6,250 crore (excluding GST). The announcement was made via a formal tender notice dated July 25, 2025, signaling the commencement of large-scale civil construction work on the ambitious coastal metro project.

The tender, issued under the EPC (Engineering, Procurement, and Construction) model through International Competitive Bidding (ICB), invites experienced and financially sound global contractors to participate in the project’s delivery through a Single Stage Two Envelope system (Technical & Financial).

This EPC package encompasses the construction of 46.23 km of viaducts across three corridors, including 20.16 km of innovative double-decker four-lane flyover-cum-metro viaduct structures, and the development of 42 elevated metro stations across Visakhapatnam city. The contract is designed to be executed in 30 months from the date of commencement, with a special timeline of 24 months for the double-decker segment.

The bid submission window is open from July 28, 2025 to September 12, 2025 (up to 3:00 PM), and all bids must remain valid for 180 days post submission. A bid security amount of ₹62.50 crore has been set for applicants, with a validity of 240 days in case of Bank Guarantee (BG) submission. Interested bidders are also required to pay a non-refundable transaction fee of ₹25,000 + GST to APTS and a non-refundable bid submission fee of ₹1 lakh to APMRCL.

The Visakhapatnam Metro Rail Project Phase 1 forms a vital part of the state government’s vision to transform Vizag into a world-class urban hub, equipped with green, efficient, and future-ready transit infrastructure. The 46.23 km network in this tender is expected to serve some of the most densely populated and traffic-congested areas of the city.

Welcoming the issuance of EPC tenders, Mrs. Mamta Shah, MD & CEO of Urban Infra Group, said, “The Visakhapatnam Metro is not just a transport project—it is a forward-thinking blueprint for sustainable urbanization in coastal India. With modern engineering like the double-decker flyovers and elevated metro stations, this project will optimize land use, improve mobility, and reduce pollution in one of the fastest-growing regions in the country. We commend APMRCL for progressing with transparency and global competitiveness.”

The metro project is being developed under a 50:50 cost-sharing model between the Central and Andhra Pradesh governments, with the remaining funding sourced through low-interest loans backed by sovereign guarantees. It is part of Andhra Pradesh’s larger infrastructure push that includes metro projects in both Visakhapatnam and Vijayawada under the Andhra Pradesh Reorganisation Act.

Once complete, the Visakhapatnam Metro is expected to dramatically enhance public transportation options, reduce vehicular congestion, cut commute times, and contribute significantly to the region’s economic development and environmental sustainability.