Union Minister G. Kishan Reddy recently stated that the Telangana government has not yet submitted the essential revised Detailed Project Report (DPR) for the highly anticipated second phase of the Hyderabad Metro Rail. This delay comes despite the state’s recent decision to assume control of Phase One, a 69.2 km stretch, from the concessionaire L&T Metro Rail Hyderabad (L&TMRH).
“There’s a noticeable lack of clarity from the Congress government,” remarked Mr. Reddy during a media interaction at the State BJP office on Monday. He criticized Chief Minister A. Revanth Reddy’s frequent discussions about Metro Phase Two, pointing out that the state government has not formally provided the revised project details or the official agreement with L&T for the Phase One takeover. “I’ve only come across news of this pact in newspapers,” he added.
Just last month, following discussions between the Chief Minister, high-ranking officials, and L&T leadership, the state government declared its intention to invest ₹2,100 crore as equity and absorb roughly ₹13,000 crore in debt for the first phase of the metro project.
The state’s strategic move aims to establish a Joint Venture (JV) with the Central government, facilitating access to funding from international organizations like JICA, potentially at an attractive 2% interest rate for the second phase. This ambitious 76.4 km expansion, projected to cost ₹24,269 crore, is designed to connect five key corridors throughout Hyderabad and Secunderabad.
However, Mr. Reddy asserted that the Central government has not received any formal notification regarding this agreement. His discussions with Union Minister for Housing and Urban Affairs, Manohar Lal Khattar, confirmed that the revised DPR for the second phase remains outstanding.
“The Centre is concerned about how Phase One and Phase Two of the Hyderabad Metro Rail will be seamlessly integrated,” he explained, responding to a query. “Questions have been raised regarding the coordination of trains, revenue management, and other operational details, especially since Phase One was a Public-Private Partnership (PPP) and Phase Two is intended to be jointly owned by the Central and State governments. L&T’s desire to withdraw due to losses adds another layer of complexity, leaving us unsure of the state government’s precise plan for taking over the existing Phase One infrastructure.”