HYDERABAD: Chief Minister A Revanth Reddy has written to Union Minister G Kishan Reddy, urging the Union government to fast-track approvals for Hyderabad Metro Rail Phase-II and ensure the release of a sanctioned loan from the Indian Railway Finance Corporation (IRFC). He has also sought an immediate meeting with Union Railway Minister Ashwini Vaishnaw to discuss the pending approvals and funding issues.
In an open letter released to the media on Saturday, Revanth said the 69-km Metro Phase-I network has been serving Hyderabad commuters well. With the city expanding rapidly, the Telangana government has proposed Phase-II, comprising seven corridors covering 122.9 km at an estimated cost of Rs 38,595 crore.
The chief minister said the state had addressed concerns raised by the Ministry of Housing and Urban Affairs over the private operating model of Phase-I and the institutional structure proposed for Phase-II. To ensure the entire metro network functions as a single integrated system, the state has decided to acquire Phase-I, he added.
According to the letter, the acquisition involves a transaction valued at Rs 15,000 crore, including Rs 1,461.47 crore for equity acquisition and Rs 13,538.53 crore for refinancing project debt. Revanth said the process was carried out transparently by a state-appointed committee that included UPMRCL managing director Sushil Kumar as the Union government’s nominee.
He noted that IRFC had completed due diligence and signed the loan agreement. The state government has provided a guarantee for the loan and agreed to a direct debit mechanism through the Reserve Bank of India.
First instalment of loan yet to be released: CM
“As required under the loan agreement, the state government has already paid an upfront fee of Rs 84.32 crore for the release of the first tranche and deposited the equity amount of Rs 1,461.47 crore into an escrow account. However, despite fulfilling all conditions and completing the required formalities, the first instalment of the loan, which was scheduled for release on June 15, 2026, has not yet been disbursed,” Revanth said.
Revanth clarified that Telangana was not seeking any grant or financial assistance from the Centre and was only asking for the IRFC loan to be released as per the signed agreement.
He urged Kishan, as a senior Union minister from Telangana, to intervene and facilitate the release of the funds.
He said that if approvals continue to be delayed, the state is prepared to take up the project using its own resources and institutional borrowings. However, he asked the Centre to grant the required clearances without further delay.
