TG Govt Exploring Alternate Funding Options to Complete Metro Phase-1 Takeover From L&T
The CS also instructed officials to expedite the procurement of additional Metro Rail coaches to meet the growing passenger demand
Hyderabad: The government is seriously exploring alternative funding options to complete the takeover of Hyderabad Metro Rail (HMR) Phase-I from L&T after the Centre reportedly did not grant the required approval for the Indian Railway Finance Corporation (IRFC) to release a loan of `13,600 crore for the acquisition process.
With the takeover now becoming critical for securing approvals for HMR Phase-II, the state government is understood to have decided to approach public and private sector banks, including the State Bank of India (SBI) and ICICI Bank, for loans at competitive interest rates. It is also exploring the possibility of securing financial assistance from the Japan International Cooperation Agency (JICA).
Official sources said the issue figured prominently during the Hyderabad Metro Rail Limited (HMRL) board of directors meeting chaired by Chief Secretary Sanjay Jaju at the Secretariat on Friday. The official statement issued after the meeting made no reference to the government's efforts to mobilise loans for the Phase-I takeover. The CS also instructed officials to expedite the procurement of additional Metro Rail coaches to meet the growing passenger demand.
The official release stated that the Chief Secretary directed officials to take measures to ensure Metro Rail passengers reached their destinations safely, conveniently and comfortably. He suggested introducing a common mobility ticketing system across public transport services, including Hyderabad Metro and TGSRTC, enabling commuters to travel using a single ticket. He instructed officials to hold discussions with TGSRTC for developing a common mobile application and also asked them to examine the feasibility of introducing daily, weekly and monthly Metro Rail passes to improve commuter convenience.
The Board meeting reviewed the latest progress on the Phase-I takeover, the status of land acquisition and utility shifting works for Metro Phase-II, and the progress of approvals required for the second phase.
The meeting was attended by board directors, including special chief secretaries Jayesh Ranjan and Vikas Raj, DGP (law and order) Mahesh M. Bhagwat, finance special secretary Sikta Patnaik, managing directors K. Ashok Reddy (HMWS&SB) and Sarfaraz Ahmed (HMRL), additional managing director B. Ajith Reddy and joint managing director Shivendra Pratap.
Meanwhile, official sources revealed that the Centre has reportedly asked the Telangana government to complete the HMR-I takeover within the next two months to facilitate approvals for the proposed Phase-II project. According to the sources, the Centre has indicated that it would not be associated with the Phase-I acquisition process but was willing to support Phase-II as a joint venture project with the state government.
The Telangana is understood to have urged the Centre not to link the Phase-I takeover with approvals for Phase-II. However, the Centre is said to have maintained that completion of the Phase-I acquisition within two months is a prerequisite for granting approvals to the second phase. Faced with this timeline, the state government has reportedly decided to approach public and private sector banks to secure the required loans at the earliest.
The first phase of the Metro acquisition process was originally scheduled to be completed by May-end but was stalled after the proposed IRFC loan failed to materialise. Although the IRFC had signed an agreement to provide a loan of `13,527 crore to Hyderabad Metro Rail Limited, the funds could not be released due to the absence of a mandatory No Objection Certificate (NOC) from the Centre.
Chief Minister A. Revanth Reddy had personally taken up the matter with Union Ministers and also addressed letters seeking clearance for the loan. During those discussions, it was jointly decided to appoint SBI Caps as a consultant to re-evaluate the Phase-I takeover and facilitate raising the necessary funds for both the acquisition and the proposed Metro Phase-II. However, there has reportedly been no significant progress on the exercise for nearly one and a half months.
With indications that IRFC may no longer be in a position to extend the loan, the Telangana government is also planning to entrust the responsibility of selecting an appropriate lending institution to a specialised agency to expedite loan sanction and disbursement, ensuring that the Metro acquisition process is completed without further delay.
