Hyderabad Metro Phase II: Government Eyes Global Funding, JICA Talks in Progress
In a strategic financial move, the government is actively engaging with international financial institutions to secure funding for the project,
Hyderabad: The Andhra Pradesh government is accelerating efforts to execute Phase II of the Hyderabad Metro Rail project, with a goal to complete at least 50% of the work before the next elections. In a strategic financial move, the government is actively engaging with international financial institutions to secure funding for the project, including talks with the Japan International Cooperation Agency (JICA).
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₹43,848 Crore Allocated for Phase II
The second phase of the Metro has been divided into Part-A and Part-B, with eight corridors proposed under this structure. The total estimated cost for the project stands at ₹43,848 crore.
Nearly Half of Funding Sought from Global Banks
Of the total project cost, 48% (₹21,047 crore) is proposed to be raised through loans from international banks. This is intended to be the lion’s share of the required funding, with the rest coming from the state, the Centre, and other partnerships.
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JICA Discussions Signal Global Backing
Two months ago, a delegation of top state officials visited Japan and held crucial discussions with JICA representatives. They reportedly sought financial assistance, pending approval of the Detailed Project Report (DPR) by the Central government. JICA has been a major partner in urban infrastructure development across India and is expected to play a significant role in Metro Phase II funding as well.
Centre’s Clearance Awaited for Five Corridors
As per official sources, the government is actively pursuing Central approval for five corridors under Part-A. This clearance is essential for unlocking certain funding streams, including those from international agencies.
PPP Model for ₹1,753 Crore
In addition to government contributions and foreign loans, ₹1,753 crore (4%) is expected to be generated through the Public-Private Partnership (PPP) model. The total anticipated contribution from banks and private investors under PPP could reach ₹22,800 crore.
Summary
The Andhra Pradesh government’s multi-pronged funding strategy, involving global financial bodies like JICA, domestic PPP models, and government aid, aims to make Hyderabad Metro Phase II a reality. If successful, this could significantly enhance the city’s public transport infrastructure while setting a benchmark for urban transit planning.
