CM Revanth Reddy Questions IRFC Over Delay in ₹13,500 Crore Hyderabad Metro Takeover Funds

HYDERABAD: Telangana Chief Minister Revanth Reddy on Monday questioned why funds from the Indian Railway Finance Corporation (IRFC) had not been released despite all agreements being completed for the takeover of the Hyderabad Metro from L&T.

Addressing a media conference at the Dr B.R. Ambedkar Telangana State Secretariat along with Ministers D. Sridhar Babu, Komatireddy Venkat Reddy, Seethakka, Vakiti Srihari, Mohammed Azharuddin, several Members of Parliament and public representatives, the Chief Minister explained in detail the issues relating to the takeover of Hyderabad Metro Phase-I, fund mobilization, and the proposed Metro Phase-II expansion.

Metro Expansion Essential for Hyderabad’s Growth

CM Revanth Reddy said Hyderabad Metro expansion is essential to transform Hyderabad into a global city and attract investments.

He stated that if the Central Government issues a No Objection Certificate (NOC), the Telangana Government is ready to undertake Metro Phase-II expansion with 100 percent state government equity even without any financial contribution from the Centre.

All Arrangements Completed for Metro Takeover

The Chief Minister said that after acquiring Hyderabad Metro Phase-I from L&T, the state government plans to undertake Metro expansion through state participation.

He explained that, following the Centre’s suggestions, all arrangements required for taking over the first phase of the Metro have been completed.

According to him, all agreements with the Indian Railway Finance Corporation (IRFC) for arranging ₹13,500 crore to acquire the Metro from L&T have already been finalized.

He added that the Telangana Government and the Reserve Bank of India (RBI) had also provided counter guarantees.

However, he questioned why the funds that were supposed to be released by IRFC on Monday had not been disbursed.

Funds Already Credited to IRFC Account, Says CM

Revanth Reddy recalled that after discussions and negotiations regarding the Metro takeover, funds from a Japanese financial institution had already been transferred into the IRFC account.

Despite the funds being credited to IRFC, the amount that should have been released to L&T under the agreement had not been paid, he said.

Hyderabad Metro Journey and Historical Background

The Chief Minister recalled that the foundation for Hyderabad Metro Phase-I was laid during the tenure of former Prime Minister Manmohan Singh, UPA Chairperson Sonia Gandhi, former Union Minister S. Jaipal Reddy, and former Chief Minister Y.S. Rajasekhara Reddy.

He said tenders for the Metro project were invited in 2009 with the vision of creating a transport system even better than the Delhi Metro.

Although construction was completed by 2020, the Falaknuma route was not completed. Historical structures and other reasons were cited for the delay, he added.

According to Revanth Reddy, the project initially started with an estimated cost of ₹15,000 crore but eventually rose to ₹22,000 crore upon completion.

He further stated that the previous government did not focus on Metro expansion during its ten-year tenure.

The Chief Minister said Hyderabad Metro was once ranked second in the country after Delhi Metro but has now fallen to ninth place due to the lack of expansion.

Population Growth Makes Metro Expansion Necessary

Revanth Reddy stated that the population in the Hyderabad Core Urban Region (CURE) has reached 1.34 crore.

Given this growth, Metro expansion has become unavoidable, he said.

The Chief Minister noted that he had met the Prime Minister and Union Ministers handling Finance, Urban Development, and Railways to press for Metro expansion support.

L&T Declined Phase-II Expansion Due to Losses

The Chief Minister said the Centre had suggested reaching an agreement with L&T for Metro Phase-II expansion.

However, L&T reportedly informed the government that it was suffering annual losses of ₹350 crore to ₹400 crore and therefore could not undertake the second phase expansion.

Following this, the Centre advised the state government to take over Hyderabad Metro Phase-I and proceed with expansion through state participation, he added.

Telangana Government Acquires Metro at Reduced Cost

Revanth Reddy said the state government decided to acquire the first phase of the Metro project to improve public transport facilities and control pollution after L&T declined expansion plans.

According to the Chief Minister, the government purchased a Metro project valued at ₹30,000 crore from L&T for ₹15,000 crore to facilitate expansion across Hyderabad and bring Metro services to all routes.

He also stated that while previous governments had borrowed funds for several projects at interest rates ranging from 8 percent to 11 percent, the Metro takeover financing was arranged through IRFC at just 4 percent interest.

Details of IRFC Loan Agreement

The Chief Minister explained that IRFC, a Government of India enterprise, provides loans for railway projects.

To facilitate the Metro takeover, the Telangana Government entered into a loan agreement with IRFC.

He said the government had paid:

• ₹84 crore as fees to IRFC
• ₹1,400 crore as state equity contribution

Revanth Reddy stated that all transactions related to the loan agreement had been completed.

According to the agreement between the Telangana Government and IRFC, payment was due on Monday, but the release of funds was halted.

He questioned who was responsible for the delay.

Appeal to Union Minister Kishan Reddy

The Chief Minister asked why Telangana was being treated differently when the Central Government contributes 50 percent funding for Metro expansion projects in other states.

He urged Union Minister G. Kishan Reddy to take responsibility and help resolve the issue.

Revanth Reddy also challenged claims that the Centre was already bearing 50 percent of Hyderabad Metro expansion costs and requested supporting documents if such claims were true.

State Ready for Phase-II Expansion

The Chief Minister reiterated that Hyderabad Metro Phase-II expansion would not be possible unless the state government first takes over Phase-I.

He stated that if the Centre does not participate with a 50 percent share in the second phase, the Telangana Government is prepared to proceed through Hyderabad Metro Rail Limited (HMRL).

Responding to another question, he said the government does not want to complicate the matter and is only seeking a solution from Union Minister Kishan Reddy, who holds a responsible position in the Central Government.

“Metro Expansion Is Crucial for Hyderabad”

Revanth Reddy said the state government had brought the issue to an advanced stage by following the Centre’s suggestions and the advice of Central Government experts.

“Metro expansion is extremely important for Hyderabad city. If required, I will provide a PowerPoint presentation to MPs explaining all the agreements. This work is being done for the people. People should benefit. I hope the issue is resolved amicably,” the Chief Minister said.

Chief Minister Revanth Reddy has questioned the delay in releasing ₹13,500 crore from IRFC for the takeover of Hyderabad Metro Phase-I from L&T, despite all agreements, RBI counter guarantees, and financial arrangements being completed. The Telangana Government maintains that Metro expansion is critical for Hyderabad’s future growth and has expressed readiness to undertake Metro Phase-II expansion with full state funding if the Centre grants the necessary NOC.

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