Hyderabad Metro phase 2 project cost rose by Rs. 4,335 crore amid approval delay

Hyderabad: The estimated cost of Hyderabad Metro phase 2 increased by Rs. 4,335 crore after delays in the Centre’s approval process, with the revised project estimate rising from Rs. 34,260 crore to Rs. 38,595 crore, according to proposals submitted by the Telangana government.

The state government had first submitted the Detailed Project Reports (DPRs) for the second phase to the Centre in November 2024. Since then, Chief Minister A. Revanth Reddy met Union ministers on several occasions and also appealed to Prime Minister Narendra Modi to expedite approval. However, the proposal has remained pending, resulting in a sharp increase in the estimated project cost.

Engineering experts said the prolonged delay could place an additional financial burden on the Telangana government because construction costs continue to rise over time.

Hyderabad Metro phase 2 covered seven expansion corridors

The proposed Hyderabad Metro phase 2 includes seven corridors covering 122.6 km. These are Nagole to Shamshabad Airport (36.8 km), Raidurg to Kokapet Neopolis (11.6 km), MGBS to Chandrayangutta (7.5 km), Miyapur to Patancheru (13.4 km), LB Nagar to Hayathnagar (7.1 km), Jubilee Bus Station (JBS) to Medchal (24.5 km), and JBS to Shamirpet (22 km).

The Telangana government initially estimated the expansion cost at Rs. 34,260 crore in 2024. By June 2026, the revised estimate reached Rs. 38,595 crore, reflecting an increase of Rs. 4,335 crore.

Meanwhile, the Centre appointed SBI Caps as the consultancy agency to assess both the first phase loan takeover and the second phase expansion. Although the appointment was announced, officials said formal government orders had not been issued even after 10 days. The Telangana government has already nominated its representative for the process.

Officials said the consultancy assessment could be completed within six months once the Centre issues the required orders. SBI Caps will evaluate the Metro project’s assets, examine expansion plans, scrutinise project documents, assess construction costs and financing requirements, and submit a detailed report. The consultancy is expected to take until December to complete the exercise.

Officials also said Chief Minister Revanth Reddy was likely to meet Union ministers again on Tuesday to discuss the pending Metro Rail proposals.