Hyderabad Metro Funding Talks Stalled, Referred to Urban Development Ministry

Discussions on the proposed takeover of Hyderabad Metro Rail Phase-I by the Telangana government and funding for Phase-II expansion remained inconclusive after a high-level meeting in New Delhi on Monday. The meeting was attended by Telangana Chief Minister A. Revanth Reddy, Union Railway Minister Ashwini Vaishnaw, and Union Coal and Mines Minister G. Kishan Reddy.

The Telangana government had sought funding from the Indian Rail Finance Corporation (IRFC) to take over the existing Metro network and facilitate the Phase-II expansion. The proposed IRFC loan was reported to be around ₹13,000 crore for the takeover. However, Railway Minister Vaishnaw raised concerns about IRFC's role in financing a metro project, as the corporation traditionally funds railway infrastructure such as tracks and rolling stock. He also noted that the Centre is already considering financial support for Phase-II, raising questions about the appropriateness of dual funding.

Sources indicated that discussions covered repayment mechanisms, financial liabilities, and loan servicing modalities. Given the technical and policy-related complexities, it was decided to refer the matter to Union Minister for Urban Affairs Manohar Lal Khattar for further examination. The referral signals that the issue involves broader urban transit policy considerations, beyond the purview of the Railway Ministry alone.

Following the meeting, Chief Minister Reddy described the talks as positive and constructive. He announced that a follow-up meeting with Minister Khattar would be held on Tuesday morning to continue deliberations. The Chief Minister's remarks suggest an optimistic outlook, though concrete outcomes remain pending.

The participation of Mr. Kishan Reddy, a senior BJP leader from Telangana, in the meeting drew attention. The Chief Minister had previously accused Mr. Kishan Reddy of ignoring Telangana's interests and obstructing the metro project. The joint presence at the meeting indicates potential cross-party engagement on the issue.

Officials expect further clarity after discussions with the Urban Development Ministry. The Hyderabad Metro, a key infrastructure project, has faced financial challenges since its launch. The state government has been seeking central support to ensure its viability and expansion. The next steps will depend on the Urban Development Ministry's assessment of the funding proposal and its alignment with national urban transit policies.