Telangana Govt Urges Centre to Release Hyderabad Metro Funds, Fast-Track Phase-II Approvals
Hyderabad, June 16 (TNT): Telangana Chief Minister A. Revanth Reddy on Tuesday written to Union Coal and Mines Minister G. Kishan Reddy seeking his intervention for the immediate release of sanctioned financing for the Hyderabad Metro Rail takeover transaction and expeditious approvals for the proposed Hyderabad Metro Rail Phase-II project.
In an open letter to the Kishan Reddy, the Chief Minister said Hyderabad Metro Phase-I, spanning 69 km with 57 stations, had transformed urban mobility in the city and that the state government had proposed a 122.9-km Phase-II expansion project at an estimated cost of ₹38,595 crore.
Revanth Reddy noted that concerns raised by the Union Ministry of Housing and Urban Affairs Manohar Lal Khattar regarding the integration of a privately operated Phase-I network with a proposed Phase-II system had prompted the Telangana government to take over the Phase-I project so that the entire metro network could function under a unified public-sector framework.
According to the Chief Minister, the takeover involved acquisition of equity worth ₹1,461.47 crore and refinancing of existing debt amounting to ₹13,538.53 crore, taking the total transaction value to ₹15,000 crore.
He stated that the process was carried out transparently through an officers’ committee that included a nominee of the Government of India.
The letter said that the Indian Railway Finance Corporation (IRFC) had examined the proposal, conducted due diligence, assessed project viability and sanctioned the required financing.
The state government subsequently provided all safeguards sought by the lender, including a government guarantee and a Reserve Bank of India-registered Direct Debit Mechanism (DDM).
Revanth Reddy stated that Telangana had already deposited ₹1,461.47 crore towards the equity component and paid ₹84.32 crore as an upfront fee demanded by IRFC.
While the first tranche of financing was scheduled for disbursement on June 15, 2026, the sanctioned funds had not been released, he said.
Describing the delay as a matter of concern, the Chief Minister urged Kishan Reddy to immediately take up the issue with IRFC and Union Railway Minister Ashwini Vaishnaw to ensure release of the sanctioned loan in accordance with the financing agreement.
He also reiterated Telangana’s request for approval of Metro Phase-II as a 50:50 joint venture between the Centre and the state government. In the event of delays in such approval, he said the state was prepared to proceed with the project using its own resources and institutional financing, provided the necessary clearances were granted promptly.
The Chief Minister warned that Hyderabad had slipped from being one of India’s leading metro rail cities to ninth position due to the absence of network expansion over the past decade, while other metropolitan cities continued to rapidly expand their metro infrastructure.
Revanth Reddy concluded by seeking an early meeting with Union Railway Minister Ashwini Vaishnaw to resolve the issue and facilitate both the release of sanctioned IRFC funds and timely approvals for Hyderabad Metro Rail Phase-II.
TNT TS
