Revanth Reddy Seeks Immediate Release of Rs 13,600 Crore for Hyderabad Metro, Demands Clarity on Phase II

Hyderabad, June 2026 : Telangana Chief Minister A. Revanth Reddy on Monday urged the Centre to immediately release Rs 13,600 crore towards term loan refinancing for Hyderabad Metro Rail Phase I and sought clarity on the Union government’s role in the proposed Phase II expansion of the metro network.

Addressing a press conference in Hyderabad, the Chief Minister alleged that the Centre was delaying the release of funds despite all necessary approvals being in place and called upon Prime Minister Narendra Modi, Union Minister G. Kishan Reddy and BJP MP Etala Rajender to intervene in the matter.

Revanth Reddy said the state government had formally acquired Hyderabad Metro Rail Phase I from Larsen & Toubro (L&T) in April for Rs 1,461 crore as part of a larger financial restructuring plan aimed at ensuring the long-term viability of the metro system.

He explained that L&T Metro Rail Hyderabad Limited (LTMRHL) had an outstanding debt of Rs 13,538.53 crore as of April 30, backed by guarantees from L&T. The state government planned to refinance this debt through a lower-interest loan arrangement facilitated by the Indian Railway Finance Corporation (IRFC).

The Telangana government signed an agreement with IRFC on May 25 for term loan refinancing, with funds sourced from a Japanese financial agency at an interest rate of around 4 per cent—significantly lower than the existing borrowing cost of 8.25 per cent.

According to the Chief Minister, the Japanese agency had already released the funds to IRFC, and the transfer to the state government was expected on June 1. However, the amount has not yet been released.

“A Japanese agency has released the funds to IRFC, but IRFC is not transferring them to Telangana. We even submitted a letter after obtaining Reserve Bank approval, yet the transfer has been blocked,” Revanth Reddy said.

The Chief Minister accused Union Coal and Mines Minister G. Kishan Reddy of obstructing the process for political reasons. He alleged that the Union Minister met senior central leaders in May and urged them to delay the release of funds.

“Kishan Reddy is the MP from Secunderabad, where metro expansion is expected. We are asking him a simple question: will he take responsibility for ensuring that Telangana receives its rightful Rs 13,600 crore or not?” the Chief Minister asked.

Revanth Reddy also sought a clear stand from the Centre regarding Hyderabad Metro Phase II. He said if the Union government was unwilling to be a 50 per cent partner in the expansion project, it should issue a No Objection Certificate (NOC) to enable the state government to proceed independently.

“If the Centre has any reservations about participating in Phase II, just issue the NOC. We are prepared to bear the entire cost and carry out the expansion ourselves,” he stated.

The Chief Minister alleged discrimination against Telangana, pointing out that the Centre had approved metro projects in Ahmedabad, Uttar Pradesh and Visakhapatnam but had not cleared Hyderabad Metro Phase II.

“You can see the extent of the discrimination. This is not political criticism; it is about securing Telangana’s rightful share,” he said.

Revanth Reddy recalled that when the state government initially sought approval for Phase II, the Centre insisted that L&T should undertake the expansion because it had constructed Phase I. However, L&T reportedly declined due to heavy financial losses incurred while operating the existing metro network.

According to the Chief Minister, L&T had developed metro assets worth nearly Rs 30,000 crore but was suffering annual losses of around Rs 400 crore.

“The Centre itself suggested that the only viable solution was for the state government to take over the Metro from L&T,” he said.

He claimed that the Telangana government managed to acquire metro assets valued at nearly Rs 30,000 crore for about Rs 15,000 crore, calling it a financially prudent decision.

The state’s objective, he said, is twofold: to successfully complete the takeover and refinancing of Phase I and to move ahead with Phase II expansion to improve public transport connectivity across Hyderabad.

Revanth Reddy reiterated that the Metro is critical to Hyderabad’s future growth and urban mobility, and urged the Centre to act without delay in the interest of Telangana’s development.