Revanth Writes Open Letter to Kishan Reddy on Metro Issue
Revanth Reddy also stressed that Telangana had addressed all concerns relating to operational integration of Metro Phase-I and the proposed Phase-II network.
Hyderabad: Chief Minister A. Revanth Reddy on Tuesday wrote an open letter to Union coal minister G. Kishan Reddy seeking his intervention to resolve the Hyderabad Metro Rail funding and expansion issues. The Chief Minister appealed to Kishan Reddy to arrange a meeting with the Union ministers concerned and ensure that the Indian Railway Finance Corporation (IRFC) immediately disbursed the sanctioned loan of Rs.13,538.53 crore for the government's takeover of Hyderabad Metro Rail Phase-I from L&T, besides expediting approvals for the Metro Rail Phase-II project.
In the letter, Revanth Reddy explained that Hyderabad Metro Rail Phase-I, spanning 69 km across three corridors with 57 stations, was developed under the PPP model by L&T Metro Rail (Hyderabad) Limited. He said the state government had proposed a 122.9-km Metro Phase-II project at an estimated cost of `38,595 crore, but concerns raised by the Union urban affairs ministry regarding integration of a privately operated Phase-I with a government-run Phase-II prompted the state government to initiate the takeover of Phase-I.
The Chief Minister said the takeover package involved acquisition of equity worth Rs.1,461.47 crore and refinancing of existing project debt of Rs.13,538.53 crore, taking the transaction value to Rs.15,000 crore. He noted that the process was carried out transparently through an officers’ committee that included a nominee of the Centre. Revanth Reddy stated that IRFC conducted due diligence, assessed the project’s viability and repayment capacity, sanctioned the financing and obtained all necessary agreements and safeguards, including a State government guarantee and RBI-backed Direct Debit Mechanism.
He pointed out that the state government had already deposited Rs.1,461.47 crore towards the equity component and paid Rs.84.32 crore as the upfront fee demanded by IRFC. Although the first tranche of financing was scheduled for disbursement on June 15, 2026, the sanctioned funds had not been released. Describing the situation as troubling, the Chief Minister said Telangana had fulfilled every condition laid down by the lender and was therefore entitled to timely disbursement of the approved loan.
Revanth Reddy also stressed that Telangana had addressed all concerns relating to operational integration of Metro Phase-I and the proposed Phase-II network. He reiterated the state’s request for approval of Phase-II as a 50:50 joint venture between the Centre and the State. At the same time, he said Telangana was prepared to proceed with Phase-II using its own resources and institutional financing if necessary, provided the Centre grants all required approvals without delay.
The Chief Minister urged Kishan Reddy to take up the matter with IRFC and Union railway minister Ashwini Vaishnaw to ensure immediate release of the sanctioned funds. He further requested discussions with the Central ministries concerned and help secure early approvals for Hyderabad Metro Rail Phase-II. Revanth Reddy said Hyderabad had slipped from being one of India’s leading metro rail cities to the ninth position due to the absence of network expansion for over a decade and appealed for urgent action in the interest of the city’s future growth and mobility needs.
