Hyderabad Metro Phase-II gets Centre nod in principle; 50:50 cost-sharing proposed
Synopsis
The Centre has cleared in principle the long-awaited Hyderabad Metro Phase-II, offering a 50:50 cost-share with Telangana for the 162 km expansion. Simultaneously, ₹3,975 crore has been committed under AMRUT 2.0 for 39 sewage treatment plants to clean up the Musi River — signalling a broad federal push for Hyderabad's urban infrastructure.
Key Takeaways
The Centre has given in-principle approval for Hyderabad Metro Phase-II , confirmed by Union Minister G.
Kishan Reddy on 20 May 2025 .
The project will proceed on a 50:50 cost-sharing basis between the Centre and the Telangana government .
The Phase-II expansion covers 162 km ; the Centre will examine the DPR before final approval.
Under AMRUT 2.0 , 39 STPs worth ₹3,975 crore have been sanctioned to treat 972 million litres of sewage per day flowing into the Musi River .
The Telangana government has already taken over metro operations from L&T .
The Centre has signalled in-principle approval for the Hyderabad Metro Phase-II project, with Union Minister for Coal and Mines G. Kishan Reddy confirming on Wednesday, 20 May that the Central government has no objections and is prepared to proceed on a 50:50 cost-sharing basis with the Telangana government. The announcement followed a high-level meeting between Kishan Reddy and Union Minister for Urban Development Manohar Lal Khattar in New Delhi.
Key Developments from the New Delhi Meeting
The two ministers jointly reviewed several urban infrastructure projects in Hyderabad under the Union Ministry of Urban Development, covering urban development, infrastructure, sanitation, and public transportation. The Hyderabad Metro Phase-II expansion featured prominently on the agenda.
Khattar noted that since the Telangana state government has already taken over metro operations from L&T, the Central government will now comprehensively examine the Detailed Project Report (DPR) and all related technical specifications for the remaining Phase-II works before arriving at a final decision.
What the Phase-II Expansion Covers
The Telangana government has submitted proposals for the Phase-II metro expansion covering a stretch of 162 km. Khattar confirmed that the Centre will give these proposals 'positive consideration' and initiate the necessary follow-up actions. The equal cost-sharing framework, if formalised, would mark a significant financial commitment from both governments toward expanding Hyderabad's urban rail network.
Musi River Sanitation: ₹3,975 Crore AMRUT 2.0 Push
The meeting also addressed the long-standing issue of Musi River pollution. According to Kishan Reddy, Khattar shared details of a major sanitation initiative under the Centre's AMRUT 2.0 scheme, under which 39 Sewage Treatment Plants (STPs) have been sanctioned at a total cost of ₹3,975 crore.
These 39 STPs will collectively treat 972 million litres of sewage per day, preventing untreated wastewater from flowing into the Musi River. The initiative is expected to contribute to both river conservation and improved sanitation across the city.
Centre's Broader Commitment to Hyderabad
Khattar reiterated that the Central government is extending full cooperation toward Hyderabad's urban development and infrastructure improvement. Kishan Reddy, who represents the city in Parliament, thanked the Urban Development Minister on behalf of Hyderabad's residents.
This comes amid growing pressure on both the Centre and the Telangana state government to accelerate urban infrastructure spending as Hyderabad's population and commuter load continue to expand. With the DPR review now formally initiated, a final approval decision on Phase-II is expected in the coming months.
Point of View
Who represents Hyderabad, has a direct stake in delivering visible infrastructure wins. But 'in-principle approval' is not final approval; the DPR review clause leaves room for delay, and the 50:50 cost-sharing model will test Telangana's fiscal headroom at a time when the state is managing a strained budget. The Musi River STP commitment is substantive on paper, but 39 plants at ₹3,975 crore have been 'sanctioned' — not yet built. Hyderabad has seen urban infrastructure announcements outpace execution before; the real test will be whether timelines and funding tranches hold.
NationPress
5 Jul 2026
Frequently Asked Questions
What is the Hyderabad Metro Phase-II project?
Hyderabad Metro Phase-II is a proposed expansion of the city's existing metro rail network covering 162 km of new corridors. The Telangana government has submitted a DPR to the Centre, which is now under review for final approval.
What is the cost-sharing arrangement for Hyderabad Metro Phase-II?
The Centre has proposed a 50:50 cost-sharing model , under which the Central and Telangana governments would contribute equally to the project's funding. This arrangement is subject to the Centre's review of the DPR and technical specifications.
Why is the Centre reviewing the DPR before giving final approval?
Following the Telangana government's takeover of metro operations from L&T , the Centre wants to comprehensively assess the Detailed Project Report and all technical specifications for the remaining Phase-II works before committing to final approval and disbursements.
What is being done to clean up the Musi River in Hyderabad?
Under the Centre's AMRUT 2.0 scheme, 39 Sewage Treatment Plants have been sanctioned at a cost of ₹3,975 crore . These plants will treat 972 million litres of sewage per day , preventing untreated waste from flowing into the Musi River.
Who attended the meeting on Hyderabad Metro Phase-II in New Delhi?
Union Minister for Coal and Mines G. Kishan Reddy met Union Minister for Urban Development Manohar Lal Khattar in New Delhi on 20 May 2025 to review Hyderabad's urban infrastructure projects, including the Metro Phase-II expansion.
