Hyderabad, June 15 (Maxim News) : Chief Minister A. Revanth Reddy on Friday announced that the Telangana government is prepared to execute the Hyderabad Metro Rail Phase 2 project with 100 percent state funding if the Union government grants the required No Objection Certificate (NOC). He accused the Centre of delaying the project and obstructing the transfer of funds required for Metro expansion.
Addressing a press conference at the State Secretariat, Revanth Reddy said the state had repeatedly approached Prime Minister Narendra Modi and Union Ministers Manohar Lal Khattar and Ashwini Vaishnaw, including meetings held on May 20 and 21, seeking approval for the Metro Rail Phase 2 project. However, despite repeated requests, the proposal remains pending.
Metro Rail Phase 2 and Funding Dispute
The Chief Minister said the Centre had earlier agreed in principle to support the Metro Rail Phase 2 project with a 50:50 funding model after infrastructure major L&T stepped back from the expansion plan. However, he alleged that the Centre later failed to move the proposal forward.
Revanth Reddy explained that L&T created Metro Rail assets worth nearly ₹30,000 crore but has been incurring annual losses of around ₹400 crore. He said the company was unwilling to continue future operations, maintenance, or expansion due to financial challenges.
As a result, the Telangana government decided to take over Metro Rail assets worth ₹30,000 crore for approximately ₹15,000 crore. To refinance the outstanding loan of ₹13,600 crore, which was carrying an interest rate of 8.25 percent, the state secured support through the Indian Railway Finance Corporation (IRFC).
According to the Chief Minister, IRFC arranged funding from a Japanese financial entity at an interest rate of around four percent, which would significantly reduce the financial burden on the state. However, he alleged that the Centre blocked the transfer of the loan to the Telangana government despite Reserve Bank approvals and the state’s commitment to clear dues.
He said the loan amount was expected to be released on Friday and demanded that Union Minister G. Kishan Reddy take responsibility for ensuring the immediate transfer of funds from IRFC to the state government.
Centre Accused of Discrimination
Revanth Reddy alleged that the Union government was discriminating against Telangana while approving Metro Rail projects in Ahmedabad, Uttar Pradesh and Visakhapatnam.
“The Telangana government is ready to bear the entire cost of Metro Rail Phase 2. The Centre should at least grant the NOC and allow the project to move forward,” he said.
The Chief Minister noted that the proposed Metro expansion covers areas represented by four BJP Members of Parliament, including Kishan Reddy’s Lok Sabha constituency.
Criticism of Previous BRS Government
Revanth Reddy also blamed the previous BRS government led by K. Chandrashekar Rao for delaying the first phase of Hyderabad Metro Rail after Telangana’s formation.
He said the original project estimate of about ₹15,000 crore increased to nearly ₹22,000 crore because of a three-year delay. The delay, he added, contributed to the financial difficulties faced by L&T.
The Chief Minister alleged that the BRS government ignored Metro expansion during its ten-year rule and failed to prioritize urban transport development.
Concern Over Hyderabad Metro Ranking
Expressing concern over Hyderabad Metro’s recent ranking falling to ninth position among Metro systems in the country, Revanth Reddy said rapid expansion was necessary to meet the city’s growing transportation needs.
He also criticized what he described as “collusion politics” between BRS leaders and Union Minister Kishan Reddy on the Metro issue. While maintaining respect for the Union Minister, he said Telangana’s interests should take priority over political considerations.
Congress Legacy and Future Plans
Highlighting the origins of the Hyderabad Metro project, Revanth Reddy said the Congress government in undivided Andhra Pradesh had envisioned world-class urban transport infrastructure for Hyderabad. He recalled that former Union Minister Jaipal Reddy sanctioned the Metro project during the tenure of former Chief Minister Y.S. Rajasekhara Reddy, while agreements for the first phase were finalized during the government of K. Rosaiah.
The Chief Minister reiterated that his government remains committed to completing Metro Rail Phase 2 and expanding Hyderabad’s public transportation network.
He also questioned the slow progress of the Warangal Airport project and said he had recently met Union Civil Aviation Minister Ram Mohan Naidu to seek faster implementation of the airport development works. (Maxim News)
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