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The Congress-led Telangana government has been seeking approval from the Central government to form a Joint Venture (JV) for the proposed Hyderabad Metro Rail Phase II, to raise funds and obtain mandatory clearances for the expansion project. This effort has been ongoing for the past few months.
Hyderabad Metro Phase II Project
During a recent visit to New Delhi, Chief Minister A. Revanth Reddy reaffirmed the State government's commitment to the project. He said the government plans to take over the metro project from Larsen & Toubro (L&T) next month, after completing the required legal and financial procedures. To support this process, the government has appointed IDBI Bank and Delhi Metro Rail Corporation (DMRC) as consultants. They are reviewing both financial and technical matters, including L&T's outstanding debt of ₹13,000 crore and equity investment of ₹2,000 crore.
Hyderabad Metro Phase I
However, unresolved issues from Phase I of the metro project may complicate approval for Phase II. Phase I consists of a 69.2-km network across three corridors. Phase II plans include Phase II-A and II-B, covering 162 km across eight corridors at an estimated cost of ₹42,000 crore. Earlier, during Phase I, construction of the Green Line beyond MGBS was halted due to objections raised by AIMIM over heritage and religious structures. This led the Centre to withhold part of the Viability Gap Funding. Later, technical links had to be built to maintain operations.
After taking office, Revanth Reddy revived the project and laid the foundation stone in March 2024 alongside Hyderabad MP Asaduddin Owaisi. Officials believe unresolved Phase I issues may still affect financial settlement with L&T and the Centre's review of Phase II plans.
7.5 km Corridor
One major concern is the 7.5-km corridor from Mahatma Gandhi Bus Station (MGBS) to Chandrayangutta in the Old City. Although road widening has progressed and around 500 properties were cleared with compensation exceeding ₹400 crore, the process has been challenged in court. Officials expect this stretch to receive scrutiny from the Centre.
