The Indian government is willing to proceed with the Hyderabad Metro Rail Phase II project on a 50:50 cost-sharing basis [1, 2].
This agreement removes a significant financial hurdle for the expansion of Hyderabad's urban transit network, allowing the project to move forward with federal backing.
Union Minister for Housing and Urban Affairs Manohar Lal Khattar said to Union Coal Minister G Kishan Reddy that the Centre has no objection to the project [1]. The federal government is ready, in principle, to fund half of the expansion costs [2, 3].
"The Centre has no objection to Phase-2 of the Hyderabad Metro project and is ready for 50:50 cost sharing," Khattar said [1].
The Phase II expansion is estimated to cost ₹38,595 crore [4]. The project aims to add 122.9 km to the existing metro network [4]. This development follows previous requests from state leadership to accelerate the approval process.
Earlier this month, A Revanth Reddy pressed the federal government for a swift nod for the expansion [4]. Reddy said that a quick decision was necessary for the ₹38,595 crore project to proceed [4].
Reddy's efforts coincided with the discussions between the union ministers in Delhi [1, 2]. The proposed cost-sharing ratio of 50:50 ensures that the financial burden is split equally between the Centre and the Telangana state government [3, 5].
"The Centre is ready, in principle, to participate in the second phase of the Hyderabad Metro project on a 50:50 cost-sharing basis," Reddy said [2].
“The Centre has no objection to Phase-2 of the Hyderabad Metro project and is ready for 50:50 cost sharing.”
The federal government's willingness to cover 50% of the ₹38,595 crore cost provides the necessary fiscal certainty for Telangana to begin the 122.9 km expansion. By moving from a request for approval to an 'in-principle' agreement, the project shifts from a political negotiation to a technical implementation phase, significantly reducing the risk of budget-related delays in Hyderabad's infrastructure growth.
