CM Revanth Reddy Urges Centre To Fast-Track Hyderabad Metro Phase-1 Valuation Process

Telangana Chief Minister A. Revanth Reddy has written to Union ministers seeking urgent intervention to accelerate the process of valuing and transferring Hyderabad Metro Rail Phase-1 to the state government, warning that continued delays could affect both the existing metro network and future expansion plans.

In separate letters to Union Minister for Housing and Urban Affairs Manohar Lal and Union Minister for Coal G. Kishan Reddy , the Chief Minister stressed the need for the immediate appointment of SBI Capital Markets Limited (SBICAPS) as consultant for the valuation and financial assessment exercise.

Revanth Reddy recalled a high-level meeting held in New Delhi on June 24 , attended by Manohar Lal, Kishan Reddy and Union Railway Minister Ashwini Vaishnaw , where it was agreed that SBICAPS would be entrusted with evaluating the financial position of Hyderabad Metro Phase-1 and determining its valuation. The study is considered a key step in enabling the Telangana government to take over the project.

According to the Chief Minister, the meeting had also decided that SBICAPS would examine options for refinancing the metro project's existing high-interest debt with lower-cost borrowing. In addition, the consultancy was expected to prepare a comprehensive financial framework for the proposed Hyderabad Metro Phase-2 , including long-term funding options, financing structures and resource mobilisation strategies.

However, despite the consensus reached during the meeting, SBICAPS has not yet been formally assigned the work, and the Terms of Reference (ToR) for the consultancy remain undecided, he noted.

The Chief Minister argued that the valuation of Phase-1, debt refinancing and the financing model for Phase-2 are closely linked and should be examined together through a single integrated exercise. Any further delay in appointing the consultant, he cautioned, could slow down implementation timelines and create uncertainty around the broader metro expansion programme.

Revanth Reddy also pointed out that the delay in the Phase-1 takeover process is creating administrative and financial challenges in the day-to-day management of the metro system, while affecting long-term planning.

He further highlighted that approval of the Detailed Project Reports (DPRs) for Metro Phase-2 is still pending with the Centre, resulting in delays in securing funding and commencing project works. Prolonged delays, he warned, could lead to a substantial increase in construction costs and place an additional financial burden on the state government.

The Chief Minister requested the Union Urban Development Ministry to finalise the Terms of Reference and formally engage SBICAPS at the earliest. He also sought Kishan Reddy's intervention in coordinating with the concerned central ministries to expedite the process and ensure early completion of the consultant's appointment.