The Union Budget did not allocate funds for new projects in Telangana. However, the second phase of the Hyderabad Metro Rail project is still under consideration, and approvals are expected in the coming months, according to senior government officials.
The Hyderabad Metro Rail Phase II expansion will cost ₹24,269 crore and cover 76.4 km across five corridors. The project is currently undergoing technical evaluation by the Union Ministry of Housing & Urban Affairs. Officials have clarified that the recent budget presented by Finance Minister Nirmala Sitharaman will not affect the project’s progress.
An official, speaking anonymously, said that the proposal is being reviewed by various ministries, including railways and surface transport. Since the project follows central guidelines for metro rail joint ventures, there is optimism that it will receive approval.
For the financial year 2024-25, the revised estimates for Mass Rapid Transit System (MRTS) and metro projects nationwide have been set at ₹24,691 crore, with proposals totaling ₹31,239 crore. Officials believe these figures indicate a positive environment for Hyderabad Metro’s expansion.
The Telangana government is requesting a sovereign guarantee from the Centre. This is essential to secure funding from international financial institutions such as the Japan International Cooperation Agency (JICA), the Asian Development Bank (ADB), and the New Development Bank (NDB). With this guarantee, the state can obtain loans at lower interest rates, making the project financially viable.
The Hyderabad Metro Rail Phase II funding will come from multiple sources: 30% (₹7,313 crore) from the Telangana government, 18% (₹4,230 crore) from the Centre, and 48% (₹11,693 crore) from external loans. The remaining 4% (₹1,033 crore) is expected to be raised through public-private partnerships (PPP).
Officials pointed out that nearly 10% of the Centre’s capital expenditure was left unutilized last year, which may increase the chances of project approval. They also mentioned that while revenue expenditure is limited, capital investments in infrastructure remain a priority.
Key Corridors in Hyderabad Metro Rail Phase II:
– Nagole to Shamshabad RGIA (Airport Corridor): 36.8 km
– Raidurg to Kokapet Neopolis: 11.6 km
– MGBS to Chandrayangutta (Old City Corridor): 7.5 km
– Miyapur to Patancheru: 13.4 km
– LB Nagar to Hayatnagar: 7.1 km
Last year, the Chennai Metro Phase II project received central approval in October, setting a positive precedent for similar metro projects like Hyderabad Metro Phase II. Officials remain hopeful that approvals will be granted soon.
