Hyderabad Metro Phase-II Not Approved Yet as Centre Finds Missing Details in Plan

New Delhi: The ambitious Hyderabad Metro Rail Phase-II project has hit a roadblock as the Central Government has not granted approval, citing incomplete details and uncertainty in the Detailed Project Report (DPR) submitted by the Telangana government.

Centre Seeks Clarity on Key Operational and Financial Issues

Sources in the Union Ministry of Housing and Urban Affairs stated that several unresolved issues remain in the DPR. These include:

• Operational arrangements of Common Special Purpose Vehicle (SPV) trains, especially on the L&T Metro Rail Hyderabad network.
• Lack of transparency on electricity tariffs and transportation charges if SPV trains use the L&T network.
• No clear strategy on cost-sharing and profit-sharing between L&T and the Telangana government.

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The Centre emphasized that it cannot proceed with approvals until these critical concerns are fully addressed.

Hyderabad Metro Phase-II: Overview of the Proposed Project

The Hyderabad Metro Phase-II is a proposed 76.4 km extension comprising five corridors, approved by the Telangana state cabinet with an estimated cost of ₹2,269 crore. The project is expected to be executed in coordination with the existing L&T-run metro lines. However, the DPR does not elaborate on the logistics of joint operations.

Currently, about 5 lakh passengers commute daily on Hyderabad Metro, and overcrowding has become a serious issue. Despite this, there is no mention in the DPR of plans to procure additional trains or coaches.

Central Government Questions L&T’s Role and Profit Structure

The Central Government has raised additional concerns:

• If SPV trains operate on the L&T network, what share of operational costs and revenues will each party handle?
• Will L&T provide infrastructure support like new coaches and upgraded facilities?
• Can profits be equitably distributed if infrastructure is privately owned but publicly operated?

The MD of L&T Metro Rail reportedly attended a meeting with the Ministry post-June 3, where he rejected the idea of profit-sharing with a government agency, further complicating the negotiations.

Contrast with Pune Metro Approval

The Centre has approved the Pune Metro project recently, which highlights the contrast in approach due to clarity in project structuring and inter-agency coordination. In Hyderabad’s case, lack of detailed planning and collaboration appears to be the primary cause for the delay.

What’s Next for Hyderabad Metro?

The Hyderabad Airport Metro Rail Limited (HAMRL) submitted the DPR to the Centre, but unless the Telangana government addresses the pending questions, the Hyderabad Metro Phase-II project is unlikely to move forward.

The Centre has urged the state government to revise the DPR with complete clarity on technical, financial, and operational aspects before seeking final approval.