Metro Phase-II Row Deepens as CM Revanth Reddy Targets Kishan Reddy Over Loan Delay

The political battle over the future of the Hyderabad Metro Rail Phase-II project intensified on Monday, with Telangana Chief Minister A. Revanth Reddy accusing Union Minister G. Kishan Reddy of obstructing the release of a ₹13,600-crore refinancing loan critical to the city's next phase of metro expansion. The allegations have added a new dimension to the ongoing tussle between the state and the Centre over one of Telangana's most important infrastructure projects.

Addressing a media conference in Hyderabad, Revanth Reddy alleged that political considerations were preventing the timely release of funds despite the state government fulfilling all required conditions. He claimed that the BJP and BRS were attempting to delay the project because its successful completion by the Congress government could strengthen its political standing in Telangana.

The Chief Minister said the state had already paid ₹1,400 crore as margin money and ₹84 crore as processing charges to the Indian Railway Finance Corporation (IRFC) . He noted that the refinancing arrangement had been secured at an interest rate of around 4 percent , significantly lower than rates at which previous Metro-related borrowings were made. According to him, IRFC is acting only as an intermediary, while the actual funding is linked to financial assistance from Japan .

Revanth Reddy questioned why the loan had not been released despite the government meeting all stipulated requirements, including conditions related to guarantees involving the Reserve Bank of India (RBI) . He alleged that political interference was responsible for the delay and challenged Kishan Reddy to ensure the immediate release of the funds.

The Chief Minister also revealed that during his recent visit to New Delhi, he submitted a proposal to Union Urban Development Minister Manohar Lal Khattar , stating that Telangana was prepared to execute the entire Metro Phase-II project independently if the Centre was unwilling to contribute its share of equity. The state has also sought a No Objection Certificate (NOC) to proceed on its own if necessary.

Revanth Reddy said the government's approach was shaped by the financial difficulties faced by L&T Metro Rail Hyderabad , which reportedly cited annual losses of ₹350–400 crore as a key reason for not pursuing further expansion. He said the state subsequently developed an alternative strategy to take greater control of Metro operations and accelerate future development.

Expanding his criticism, the Chief Minister accused the Centre of adopting a discriminatory approach towards Telangana. He cited delays in the proposed Warangal Airport project and pointed out that metro rail proposals in cities such as Ahmedabad and Visakhapatnam had received approvals, while Hyderabad's expansion plans continued to face hurdles.

As the war of words between the state and the Centre intensifies, the future of Hyderabad Metro Phase-II has emerged as a major political and development issue, with both sides facing increasing pressure to clarify their positions on a project seen as crucial to the city's long-term growth and mobility needs.