CM Revanth Reddy seeks NOC for Metro Rail phase 2, offers full state funding
Hyderabad: Chief Minister A. Revanth Reddy said the Telangana government was ready to execute Metro Rail phase 2 with 100 per cent state funding and urged the Centre to issue a No Objection Certificate (NOC) for the project.
Addressing a press conference at the Secretariat on Monday, Revanth Reddy said the state was prepared to bear the entire cost of the proposed metro expansion.
He said the Centre’s approval was necessary to move the project forward without further delays.
Metro Rail phase 2 requires Central clearance
The Chief Minister said he had met Prime Minister Narendra Modi and Union Ministers Manohar Lal Khattar and Ashwini Vaishnaw several times to seek approval for the expansion project.
According to him, the project had remained pending for years despite repeated requests from the state government.
Revanth Reddy said the Centre had earlier proposed a funding model under which the Union and state governments would each contribute 50 per cent of the project cost.
However, he said the state was now willing to proceed independently if the Centre granted the required NOC.
The Chief Minister stated that the government assumed full control of the metro project after L&T declined to participate in future expansion plans.
He said the company cited mounting losses from the first phase and expressed unwillingness to continue operations and maintenance responsibilities.
Metro Rail phase 2 linked to financial restructuring
Revanth Reddy said L&T had created assets worth around ₹30,000 crore through the first phase of the project.
However, he claimed the company incurred annual losses of about ₹400 crore.
The Chief Minister said the state acquired metro assets valued at ₹30,000 crore for approximately ₹15,000 crore.
He added that the government sought to refinance L&T Metro’s bank loans of ₹13,600 crore.
According to him, Telangana secured funding through the Indian Railway Finance Corporation (IRFC) and a Japanese funding arrangement at a lower interest rate.
The Chief Minister questioned why the Centre had not permitted the transfer of the loan arrangement despite approvals and documentation submitted by the state.
He said the government had already paid ₹1,400 crore towards dues linked to the project.
Metro Rail phase 2 delay sparks criticism
Revanth Reddy urged Union Minister G. Kishan Reddy to facilitate the immediate release of funds through IRFC.
He also criticised the Centre for not approving the metro expansion while granting approvals for metro projects in Ahmedabad, Visakhapatnam and cities in Uttar Pradesh.
“We are not politicising the metro rail issue. Our goal is to take over the first phase of the Metro and complete Phase 2,” he said.
The Chief Minister also criticised the previous BRS government for not pursuing metro expansion during its tenure.
He alleged that the earlier administration failed to prioritise public transport infrastructure.
Revanth Reddy expressed concern over Hyderabad Metro’s recent ranking and claimed that delays had affected the system’s growth.
He further accused the BRS and BJP of failing to support the expansion proposal.
The Chief Minister also questioned the pace of work on the Warangal Airport project and sought greater support from the Centre for Telangana’s infrastructure plans.