The Revanth Reddy government in Hyderabad has started the expansion of the Hyderabad Metro Rail, with 70 km of metro expansion works planned across all six lines. These works require a large amount of funds, so the state government is currently discussing with the Japan International Cooperation Agency (JICA) for financial assistance.
Preliminary estimates suggest that the metro expansion works will cost Rs. 17,500 crore. Normally, the state government covers 35% of the funds, while the Central government covers 15%. The rest of the funds, 50%, will be provided as loans. However, this time, the state government is considering a new approach. Out of the 50%, 5% will be allocated to Public Private Partnership (PPP), while the remaining 45% will be borrowed for long term.
Chief Minister Revanth, Deputy CM Mallu Bhatti Vikramarka, and senior officials have met with the JICA India chief and representatives to discuss the funding. JICA has already approved loans totaling Rs. 1.07 lakh crores for the project. Officials mention that the interest on JICA loans is expected to be kept at a low rate of 2 or 3 percent.
