Metro Funding Standoff: CM Revanth Demands IRFC Loan Release From Kishan Reddy

A fresh political confrontation has erupted between the Telangana government and the Centre over funding and approvals related to the Hyderabad Metro Rail project. Chief Minister Revanth Reddy has written an open letter to Union Minister and Secunderabad MP Kishan Reddy, urging immediate intervention to secure the release of a sanctioned loan from the Indian Railway Finance Corporation (IRFC) and expedite approvals for the proposed Metro Phase-II expansion. The development has triggered a war of words between the Congress-led state government and the BJP at the Centre.

In his letter, Revanth Reddy requested the Union Minister to facilitate the release of the first tranche of the IRFC loan intended for the state government's takeover of Hyderabad Metro Phase-I. The chief minister also sought assistance in arranging a meeting with Railway Minister Ashwini Vaishnaw to address pending issues concerning the next phase of the metro project. He stressed that Telangana was not seeking financial grants but only the release of a loan already sanctioned by a central financial institution.

According to the chief minister, the Telangana government has fulfilled all requirements prescribed by the IRFC, including providing a state guarantee, depositing Rs 1,461 crore into an escrow account, and paying an upfront fee of Rs 84.32 crore. Despite meeting these conditions, he claimed that the first installment of the loan, which was expected on June 15, had not been released. Revanth Reddy argued that the delay was affecting critical infrastructure planning for the state.

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The chief minister highlighted the significance of the Hyderabad Metro network, noting that the existing Phase-I corridor, spanning more than 69 kilometres, has become a vital component of the city's public transport system. He further emphasized the importance of the proposed 122.9-kilometre Metro Phase-II project across seven corridors and reiterated Telangana's demand for the project to be implemented through a 50:50 cost-sharing partnership between the Centre and the state government.

Responding to the allegations, Union Minister Kishan Reddy rejected claims of political interference and maintained that the issue was technical in nature. He stated that the matter could be resolved through discussions among officials and asserted that the Centre remains committed to Telangana's development. The Union Minister also said the Centre had already conveyed its willingness in principle to support Metro Phase-II on a 50:50 funding basis, subject to necessary approvals and project documentation.

The dispute has added a new dimension to the ongoing political rivalry between the Congress government in Telangana and the BJP-led Centre. Revanth Reddy has indicated that the state is prepared to move ahead with Metro Phase-II through its own resources and institutional borrowings if approvals continue to be delayed. As both sides continue to defend their positions, the future of Hyderabad's metro expansion remains a closely watched issue for policymakers, political leaders, and daily commuters alike.

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