The Union Budget, presented by Finance Minister Nirmala Sitharaman, has disappointed Telangana as no new projects were approved for funding. Despite this setback, officials remain optimistic about the second phase of the Hyderabad Metro Rail project moving forward in the coming months.
The second phase of the metro project spans 76.4 kilometers and is estimated to cost ₹24,269 crore. According to senior government officials, the budget proposals have not affected the project. These officials, speaking anonymously, revealed that the Detailed Project Report (DPR) for the first phase of the project, covering five key corridors, is currently under review by the Union Ministry of Housing & Urban Affairs.
“The budget proposals will not impact the metro rail project. The DPR is undergoing technical evaluation and will soon be sent to relevant ministries, such as railways and surface transport. We are confident that the project will receive the necessary approvals since it meets all criteria for a joint venture with the Centre,” said the officials.
The second phase of the Hyderabad Metro is seen as vital for the city’s growth. It includes important corridors such as Nagole to Shamshabad RGIA (Airport Corridor), Raidurg to Kokapet Neopolis, MGBS to Chandrayangutta (Old City Corridor), Miyapur to Patancheru, and LB Nagar to Hayat Nagar. Together, these corridors will add 76.4 kilometers to the metro network, easing traffic congestion and supporting the city’s rapid expansion.
Telangana is seeking a sovereign guarantee from the Centre to secure low-interest loans from international agencies like JICA (Japan International Cooperation Agency), ADB (Asian Development Bank), and the New Development Bank. The state will contribute ₹7,313 crore (30%) to the project, while the Centre’s share is ₹4,230 crore (18%). Loans will cover the remaining ₹11,693 crore (48%) of the project’s total cost.
Officials believe the project has a good chance of approval, with the revised budget estimates for metro rail projects across India set at ₹24,691 crore for 2024-25 and proposals amounting to ₹31,239 crore. “The Hyderabad Metro Rail project aligns well with these figures, increasing the likelihood of approval,” they said.
Although the Union Budget has caused some concern, there is hope that the metro project will move forward in the next couple of months. Officials point out that 10% of the Centre’s capital expenditure went unutilized last year, making the Hyderabad Metro a potential candidate for funding.
The Telangana government is determined to push ahead with the metro’s construction, despite the challenges posed by the budget. With the technical evaluation process underway and the expectation of approval from the Centre, there is optimism that the second phase of the Hyderabad Metro Rail will soon become a reality.
