Tensions Rise as Telangana CM Accuses Centre of Blocking Metro Expansion

Telangana Chief Minister Revanth Reddy accuses the Union Government of stalling the Hyderabad Metro Phase 2 project by blocking essential funds. He alleges bureaucratic hurdles are being used for political gain, hindering the state's development despite fulfilling procedural requirements and securing cheaper loans for the project's revitalization.

In a significant escalation of political tensions, Telangana Chief Minister A Revanth Reddy on Monday openly accused the Union Government and Union Minister G Kishan Reddy of stalling the Hyderabad Metro Phase 2 project, a 122-kilometer expansion. The Chief Minister alleged that the Centre is deliberately imposing bureaucratic obstacles to block essential funding, effectively holding the city's development hostage for political purposes.

Providing historical context, Reddy highlighted that the initially Congress-led initiative faced extensive delays and cost escalations during the previous BRS administration, with project costs soaring from ₹15,000 crore to ₹22,000 crore. Upon assuming office, Reddy's administration embarked on revitalising the expansion. However, L&T, the original project partner, declined Phase 2 participation, citing financial unviability. Consequently, the State Government opted to acquire L&T's Metro assets for ₹15,000 crore and secured a loan of ₹13,600 crore at a competitive 4% interest rate from a Japanese organisation, significantly lower than previous rates of 8.25%-11.5%.

The Chief Minister claimed that while the Japanese organisation released funds to the IRFC, the transfer to the State Government is being obstructed. Reddy alleged that Kishan Reddy has been lobbying Union Ministers to halt the funds' release, accusing the Secunderabad MP of colluding with BRS leaders to impede development in the capital. He demanded a decision from the Centre to either partner in the project or issue an NOC, allowing the state to proceed independently. Reddy stressed that all procedural requirements, including RBI clearances, have been met, yet the funds remain stalled. He called upon Kishan Reddy to clarify the Centre's position and ensure the immediate transfer of the loan.