HYDERABAD: With uncertainty continuing over the promised Rs 13,600 crore refinancing package from the Indian Railway Finance Corporation Limited (IRFC), Hyderabad Metro Rail Limited (HMRL) has begun exploring alternative funding options for the state government’s takeover of Metro Phase-1.
At a meeting of the HMRL board chaired by Chief Secretary Sanjay Jaju on Friday, officials were directed to explore alternative funding options if IRFC does not provide the term loan. Sources told TNIE that the board also recommended engaging a consultant to syndicate the financing.
The Rs 13,600 crore loan is intended to refinance the Metro’s existing high-cost debt and facilitate the state government’s takeover of Phase-1 from L&T Metro Rail (Hyderabad) Limited (LTMRHL). An agreement to this effect was signed on May 25 between IRFC, HMRL and LTMRHL in the presence of IRFC CMD Manoj Kumar Dubey and then Chief Secretary K Ramakrishna Rao. However, the funds are yet to be disbursed.
The board also reviewed the progress of the proposed 122.9-km Metro Phase-2 project and directed officials to promptly address any observations raised by the Ministry of Housing and Urban Affairs (MoHUA) to expedite approvals.
To meet growing passenger demand, HMRL will also proceed with procuring 60 additional Metro coaches to strengthen capacity in the existing Phase-1 network.
The meeting further discussed measures to improve commuter convenience, including the development of a common mobility app integrating Metro Rail, TGSRTC buses and, if feasible, ride-hailing services such as Uber, Ola and Rapido for last-mile connectivity.
Chief Secretary Sanjay Jaju also proposed a common ticketing system across Metro Rail and TGSRTC, enabling commuters to travel using a single ticket. Officials were asked to hold discussions with TGSRTC on the proposal and explore the introduction of daily, weekly and monthly Metro passes.
The board also reviewed the status of the Phase-1 takeover, land acquisition and utility shifting for Phase-2, along with the progress of statutory approvals for the expansion project.
