Funding Dispute Stalls Hyderabad Metro Takeover and Phase II Expansion
A political and bureaucratic dispute between the Telangana government and the Indian central government has stalled the ₹15,000-crore takeover of Hyderabad Metro Phase I from L&T and the planned ₹38,595-crore Phase II expansion. The Indian Railway Finance Corporation froze a ₹1,527-crore loan despite the state meeting conditions. Union Minister Kishan Reddy and Chief Minister Revanth Reddy trade accusations over delays, while BRS leader KTR blames the state government’s incompetence. The impasse threatens Hyderabad’s long-term transportation plans.
Cross-source coverage
Wire timeline
Telangana CM Urges Immediate Metro Rail Valuation and Debt Structuring by SBI CAPS
Telangana Chief Minister A. Revanth Reddy has written to Union Ministers Manoharlal Khattar and G. Kishan Reddy, urging the immediate assignment of Hyderabad Metro Rail Phase I valuation, refinancing, and Phase II debt structuring to SBI Capital Markets Limited (SBI CAPS). Reddy expressed concern that despite a June 24 meeting where the assignment was agreed upon, SBI CAPS has not yet been formally entrusted, and terms of reference remain uncommunicated. He warned that the delay is causing operational uncertainty for Phase I, postponing Phase II implementation, and likely increasing costs due to time overruns. The CM stressed that the valuation, refinancing, and financial structuring are interlinked and must be examined together to expedite the state's takeover of Phase I and the expansion of Phase II.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Hyderabad Metro Rail Expansion Stalled as Centre and State Order Fresh Valuation
The expansion of Hyderabad Metro Rail (HMR) has been set back after the central and Telangana state governments decided to have SBI Capital Markets conduct a fresh valuation of Phase I and examine plans for Phase II, which includes seven corridors spanning 122 km. This decision has cast doubt on the disbursement of a ₹13,527 crore loan from the Indian Railway Finance Corporation (IRFC), which was agreed upon last month. Sources indicate that differences between the Ministry of Railways and the Ministry of Housing and Urban Affairs over issuing a No Objection Certificate (NOC) may have stalled the loan. The state government cannot form a joint venture with the Centre for Phase II without first taking control of Phase I from L&T, which requires the loan. The move also coincides with a legal dispute between the state and SBI over a land parcel at Raidurg. The fresh review effectively resets the project to square one, with no timeline for SBI Caps to submit its report.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Telangana CM urges immediate appointment of SBI CAPS for Hyderabad Metro Rail valuation and debt restructuring
Telangana Chief Minister A. Revanth Reddy has urged the central government to immediately assign SBI Capital Markets Limited (SBI CAPS) to handle valuation, refinancing, and future debt structuring for the Hyderabad Metro Rail project. The move is intended to facilitate the state's takeover of Phase I and the expansion into Phase II. In letters to Union Ministers Manoharlal Khattar and G. Kishan Reddy, the CM expressed concern that SBI CAPS had not yet been formally appointed despite agreement during a June 24 meeting. He warned that delays were causing operational uncertainty for Phase I and increasing cost risks for Phase II due to time overruns. The integrated financial examination is essential as the three elements—valuation of Phase I, refinancing of its debt, and financial structuring of Phase II—are closely interlinked and must be examined together to avoid further project delays and cost escalation.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Hyderabad Metro Rail takeover and expansion talks yield positive outcome; SBICAPS appointed consultant
Telangana Chief Minister A. Revanth Reddy held successful talks in Delhi with Union Ministers Ashwini Vaishnaw and Manoharlal Khattar regarding the state government's decision to take over the Hyderabad Metro Rail project and expand it. The meeting, also attended by Union Minister G. Kishan Reddy, resulted in the appointment of SBICAPS as a consultant to study the valuation of Phase I, select financial institutions, and mobilize loans for the takeover and Phase II expansion. A senior official from both the state and central governments will coordinate with SBICAPS to expedite the study. The Municipal Administration and Urban Development department Secretary will represent the state. Future actions will be based on the consultant's report.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Hyderabad Metro funding talks referred to Urban Development Ministry after inconclusive Delhi meeting
A high-level meeting in New Delhi between Telangana Chief Minister A. Revanth Reddy, Union Railway Minister Ashwini Vaishnaw, and Union Coal and Mines Minister G. Kishan Reddy failed to reach a conclusive agreement on the Telangana government's proposal to take over Hyderabad Metro Rail Phase-I and secure funding for Phase-II expansion. The talks focused on securing around ₹13,000 crore from the Indian Rail Finance Corporation (IRFC) for the takeover, but Railway Minister Vaishnaw raised concerns about IRFC's traditional role in funding railway infrastructure and questioned the financial and procedural viability. Due to these complexities, the matter has been referred to Union Urban Development Minister Manohar Lal Khattar for further examination. Despite the inconclusive outcome, CM Revanth Reddy expressed optimism, stating that a follow-up meeting is scheduled for Tuesday morning. The meeting's attendance by Kishan Reddy was noted as surprising given prior political tensions between him and the CM over metro project delays.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Telangana CM Revanth Reddy seeks Union Minister meeting on Hyderabad Metro issues during Delhi visit
Telangana Chief Minister A. Revanth Reddy has written to Union Minister G. Kishan Reddy, requesting him to arrange a meeting with Union Railway Minister Ashwini Vaishnaw during his upcoming Delhi visit from June 22 to 23, 2026. The letter, sent on June 20, 2026, highlights pending issues related to the Hyderabad Metro Rail project, including the Phase-II expansion, proposed takeover of the metro project, and financing arrangements involving the Indian Railway Finance Corporation (IRFC). The Chief Minister stated he would bring necessary documents such as the Metro takeover proposal, loan agreements, and Phase-II proposals. He emphasized the urgency and reminded the Union Minister of a previous communication on June 16 regarding unresolved matters. The Hyderabad Metro Phase-II is a key infrastructure priority for the Telangana government, which seeks central cooperation for implementation and funding.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.IRFC Loan Freeze Halts Hyderabad Metro Rail Takeover and Expansion
The Telangana government's plans to take over the Hyderabad Metro Rail (HMR) Phase I from L&T and expand the network to 122 km in Phase II have been stalled. The Indian Railway Finance Corporation (IRFC) froze a ₹1,527 crore loan, despite a formal agreement and the state having transferred the equity component into an escrow account. The freeze follows a terse communication from IRFC in late May. Complications include the Ministry of Housing and Urban Affairs seeking to repurpose the loan for operations and maintenance, a dispute between ministries over which authority must issue a No Objection Certificate, and unresolved contractual obligations with L&TMRH vendors. Without a sovereign guarantee from the Centre, the state may struggle to access low-cost funding. The existing L&T MRH will continue operating Phase I until the inter-governmental issues are resolved.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Telangana CM urges Union Minister Kishan Reddy to intervene in stalled Hyderabad Metro Rail loan
Telangana Chief Minister A. Revanth Reddy has written an open letter to Union Minister G. Kishan Reddy, urging him to intervene in the delayed disbursement of an IRFC loan for the takeover of Hyderabad Metro Rail (HMR) Phase I from L&T Metro Rail Hyderabad. The CM stated that the state government has met all conditions, including depositing ₹6,461.47 crore equity into an escrow account and paying an upfront fee, yet the IRFC has not released the sanctioned funds despite a June 15 drawdown date. The takeover involves acquiring equity worth ₹1,461.47 crore and refinancing ₹13,538.53 crore in debt, totaling ₹15,000 crore. The CM also sought early approvals for HMR Phase II (122.9 km, estimated cost ₹38,595 crore) as a 50:50 joint venture with the Centre, warning that the state may proceed with its own resources if further delays occur. He offered to meet Kishan Reddy personally for clarifications.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.KTR accuses Telangana CM Revanth Reddy of failing to secure Hyderabad Metro Phase-II approval
Bharat Rashtra Samithi (BRS) working president K.T. Rama Rao (KTR) accused Telangana Chief Minister A. Revanth Reddy of incompetence after the central government denied approval for Phase-II of the Hyderabad Metro Rail (HMR) project. KTR alleged that despite 71 visits to New Delhi, the Congress-led state government failed to secure clearance, while other cities like Visakhapatnam and Ahmedabad received approvals. He claimed the Chief Minister prioritizes metro connectivity to a 'non-existent imaginary city' due to personal interests, and shelved the Shamshabad Metro corridor. KTR asserted that the original HMR project was completed under former BRS Chief Minister K. Chandrashekhar Rao, and demanded the state government clarify its roadmap for Phase-II to avoid compromising Hyderabad's long-term transportation needs.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Telangana CM Revanth Reddy accuses Kishan Reddy of conspiring to stall Hyderabad Metro Phase-II
Telangana Chief Minister A. Revanth Reddy directly accused Union Coal Minister G. Kishan Reddy of conspiring to block the release of ₹1,400 crore from the Indian Railway Finance Corporation (IRFC) for Hyderabad Metro Phase-II. Speaking at a press conference on June 15, 2026, Revanth claimed he has evidence that Kishan Reddy, at the behest of BRS leaders K. Chandrasekhar Rao and K.T. Rama Rao, pressured Union Ministers and the Prime Minister to create hurdles. The CM stated the state is ready to bear the entire cost of the 122-km expansion if the Centre grants a No Objection Certificate (NOC). He criticized the Centre for clearing metro projects in smaller cities while stalling Hyderabad's expansion. Revanth also detailed the state's acquisition of Metro assets from L&T, which incurred losses, and efforts to secure lower-cost financing from Japanese agencies.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Centre facilitates Hyderabad Metro loan takeover from L&T; decision after review: Kishan Reddy
Union Minister G. Kishan Reddy announced that the Indian central government has facilitated a ₹13,527-crore loan from the Indian Railway Finance Corporation (IRFC) for the takeover of Phase I of the Hyderabad Metro Rail project from L&T Metro Rail Hyderabad. The loan has a 20-year tenure at reduced interest rates. Reddy stated that a final decision will be made after reviewing proposals, and that Union Minister Manohar Lal Khattar has given in-principle approval. Reddy also responded to allegations by Telangana Chief Minister A. Revanth Reddy, accusing him of obstructing Phase II expansion and other projects. Reddy challenged the Chief Minister to an open debate and called for a committee of senior journalists to examine the issues, offering to resign if found at fault. He also provided updates on the Warangal airport land acquisition and reiterated central cooperation with Telangana.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.