Hyderabad, June 15: Telangana Chief Minister A. Revanth Reddy on Sunday launched a sharp attack on the Union Government over the delay in approving the Hyderabad Metro Rail Phase-2 project, declaring that the state is prepared to execute the ambitious expansion entirely with its own resources if New Delhi grants the required No Objection Certificate (NOC).
Addressing a press conference in Hyderabad, the Chief Minister said the Telangana Government is willing to undertake the Metro Rail Phase-2 project with 100 percent state equity, without seeking any financial contribution from the Centre. He urged the Union Government to immediately clear the proposal and issue the necessary approvals so that work can begin without further delay.
“The Telangana Government is ready to bear the entire cost of the Metro Rail expansion project. All we need from the Centre is an NOC,” Revanth Reddy asserted.
The Chief Minister revealed that he had personally met Prime Minister Narendra Modi and Union Ministers Manohar Lal Khattar and Ashwini Vaishnaw on several occasions, including meetings held on May 20 and 21, requesting speedy approval for the long-pending Metro Phase-2 proposal.
Telangana Took Over Struggling Metro Project
Revanth Reddy said the Centre had earlier suggested a model under which both the state and central governments would contribute 50 percent each towards the Metro expansion after the original concessionaire, L&T Metro Rail Hyderabad, expressed its inability to proceed further due to mounting financial losses.
According to the Chief Minister, L&T invested heavily in the first phase and created Metro assets worth nearly ₹30,000 crore but continued to incur annual losses of around ₹400 crore. The company also reportedly declined to undertake future expansion, operations and maintenance responsibilities.
“After consultations with the Centre, the Telangana Government took over Metro assets worth ₹30,000 crore for just ₹15,000 crore,” he said.
The Chief Minister further explained that the state government had worked to restructure the project’s debt burden. He said the Metro project carried bank loans of approximately ₹13,600 crore at an interest rate of 8.25 percent. To reduce financial pressure, the state explored alternative funding options and secured support through a Japanese financial entity at a significantly lower interest rate of around 4 percent.
However, Revanth Reddy alleged that the Centre had blocked the transfer of the loan despite the state fulfilling all procedural requirements, including obtaining Reserve Bank approvals.
“We have already paid ₹1,400 crore from the state’s side and submitted all required documents. Yet the transfer of the loan has not been permitted,” he said.
The Chief Minister demanded that Union Minister G. Kishan Reddy intervene immediately and ensure the release of funds through the Indian Railway Finance Corporation (IRFC).
‘Why Approve Metro Projects Elsewhere but Not Hyderabad?’
In one of his strongest remarks, Revanth Reddy accused the Union Government of discriminating against Telangana by approving Metro Rail projects in other states while delaying Hyderabad’s expansion proposal.
He pointed out that Metro projects had recently received approvals in Ahmedabad, Uttar Pradesh and Visakhapatnam, while Hyderabad’s proposal remained pending despite being one of India’s largest and fastest-growing metropolitan regions.
“We are not politicising the Metro issue. Our objective is to strengthen public transportation, take over the first phase successfully and complete Phase-2 for the benefit of the people,” he said.
The Chief Minister noted that the proposed Metro expansion would benefit constituencies represented by four BJP Members of Parliament, including Union Minister Kishan Reddy.
Blames BRS Government for Delays
Revanth Reddy also targeted the previous BRS government led by K. Chandrashekar Rao (KCR), accusing it of delaying and neglecting Metro Rail expansion during its decade-long rule.
According to the Chief Minister, the first phase of the Metro project, originally estimated at around ₹15,000 crore, eventually escalated to nearly ₹22,000 crore due to delays and administrative decisions taken after the formation of Telangana.
He alleged that objections raised in the name of protecting heritage structures and other administrative hurdles resulted in a three-year delay in project completion, causing significant financial losses to L&T.
“The previous government failed to focus on Metro expansion despite being in power for ten years. Instead of prioritising public welfare and infrastructure, they concentrated on other interests,” he charged.
Congress Legacy and Future Vision
Highlighting the origins of Hyderabad’s Metro Rail project, Revanth Reddy credited the Congress governments in undivided Andhra Pradesh for conceptualising world-class urban transport infrastructure for Hyderabad.
He recalled that the Metro project received approval during the tenure of former Chief Minister Y.S. Rajasekhara Reddy and then Union Urban Development Minister Jaipal Reddy. Agreements for the first phase were finalised during the tenure of former Chief Minister K. Rosaiah, with the project originally targeted for completion by 2017.
The Chief Minister expressed concern that Hyderabad’s Metro system had recently slipped to ninth position among urban transit networks, arguing that rapid expansion was essential to address the city’s growing traffic congestion and transportation demands.
Warangal Airport Also Raised
Apart from the Metro issue, Revanth Reddy questioned the pace of work on the proposed Warangal Airport project. He said he had recently met Union Civil Aviation Minister Kinjarapu Rammohan Naidu and requested expedited clearances and implementation.
Concluding his remarks, the Chief Minister reiterated that Telangana remains committed to developing modern transport infrastructure and urged the Union Government to cooperate rather than delay projects that directly benefit millions of citizens.
“The people of Hyderabad deserve world-class public transport. We are ready to move forward immediately if the Centre allows us to do so,” he said.