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The Central government will decide on releasing funds for Phase II of the Hyderabad Metro Rail project only after the Telangana government completes its talks with L&T on the proposed merger of Phase I. Union Coal and Mines Minister G. Kishan Reddy said a committee has been formed for these discussions, and a final decision must be taken before the Centre moves ahead with financial support.
Hyderabad Metro Phase I
Speaking to reporters in New Delhi, Mr. Reddy said the Telangana government first needs to state its position on the Hyderabad Metro Phase I. It must complete all formal procedures related to taking over the project and submit a proper Detailed Project Report (DPR). Only after this process is finished can the Centre consider releasing funds for Phase II.
He added that there is no shortage of funds at the central level. The Union Housing and Urban Development Ministry has set aside ₹28,740 crore for Metro Rail Transit System (MRTS) and metro projects, which includes enough provision for the Centre's share in Hyderabad Metro Phase II.
Benefits to be received by Telangana
Highlighting the benefits Telangana will receive under the Union Budget, the Secunderabad MP said the State's share in central taxes has gone up by 13.5 percent. Telangana will receive ₹33,180 crore in 2026-27, compared to ₹29,280 crore in the previous year. Mr. Reddy also called the proposed high-speed rail corridors from Hyderabad to Pune, Bengaluru, and Chennai a matter of pride for the State. He said fertiliser subsidies have been increased by nearly ₹7,000 crore to benefit farmers.
TEX-ECO Scheme
He noted that the TEX-ECO scheme will support the Kakatiya Mega Textile Park in Warangal. In addition, a girls' hostel will be set up in every district for students pursuing STEM courses. He welcomed the Centre's plan to encourage municipal bonds, under which cities issuing bonds worth more than ₹1,000 crore will receive a ₹100-crore incentive. About 32 towns in Telangana will also continue to get the existing ₹200-crore support under AMRUT.
Mr. Reddy said nearly 38 lakh MSMEs in Telangana are expected to benefit from the ₹10,000-crore growth fund announced in the Budget. He described the Budget as future-focused rather than election-oriented. Earlier, Telangana BJP president N. Ramchander Rao said the high-speed rail announcements strengthen Telangana's position as a key driver of national growth. He called the Budget transformative, saying it will boost jobs, agriculture, education, healthcare, and overall economic progress.
