Revanth seeks faster approvals for Metro Phase-2

Telangana Chief Minister A. Revanth Reddy has urged the Central Government to speed up approvals and facilitate the release of funds for the proposed Hyderabad Metro Phase-2 project.

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CM requests Centre to expedite IRFC loan disbursal and project clearances

Telangana chief minister A. Revanth Reddy has urged the Central Government to expedite approvals and facilitate the release of loan funds for the proposedHyderabad Metro Rail Phase-2 project.In a letter addressed to union minister G. Kishan Reddy, the chief minister requested intervention to ensure that approvals and the disbursal of funds from the Indian Railway Finance Corporation (IRFC) are processed without further delay. He also sought an early meeting with railway minister Ashwini Vaishnaw to discuss the project.The proposed Hyderabad Metro Phase-2 project envisages the development of seven corridors covering 122.9 km at an estimated cost of ₹38,595 crore.According to the chief minister, the expansion has become necessary to meet growing transportation demand arising from Hyderabad's rapid urban growth and increasing population. Hyderabad Metro Phase-1 currently operates across 69 km spanning three corridors.

State acquires Phase-1 operations

The letter noted that the Telangana Government addressed concerns raised by the Ministry of Housing and Urban Affairs regarding operational structures for the two phases. To ensure unified management of the Metro network, the state decided to acquire Phase-1 operations.The transaction involves a total outlay of about ₹15,000 crore, including ₹1,461.47 crore towards equity acquisition and ₹13,538.53 crore towards refinancing of project debt. A committee constituted by the state government oversaw the process, with a representative nominated by the Central Government also participating.

Loan awaiting disbursal

According to the chief minister, IRFC has completed due diligence, approved the loan proposal and signed the lending agreement. The Telangana Government has provided the required guarantee and complied with funding conditions, including payment of an upfront fee and deposit of the equity component into an escrow account.
Revanth Reddy reiterated Telangana's preference for implementing Metro Phase-2 as a joint venture between the Centre and the State. At the same time, he indicated that the state is prepared to explore alternative funding arrangements if required to ensure timely execution of the project.He requested support from the Centre in facilitating approvals and clearances needed for implementation of the next phase of Hyderabad's Metro expansion.

Mass transport