Union Coal and Mines Minister G. Kishan Reddy on Tuesday, June 16, 2026, accused Telangana Chief Minister Revanth Reddy of spreading misinformation about the Hyderabad Metro Rail project, alleging that the state government's rejection of key central government suggestions had stalled a critical financing deal worth approximately Rs 13,000 crore.

Posting in Telugu on X, the Minister stated: 'హైదరాబాద్ మెట్రోపై సీఎం రేవంత్ రెడ్డి గారు తప్పుడు ప్రచారం చేస్తున్నారు' ('CM Revanth Reddy is spreading false propaganda about the Hyderabad Metro'). He added that an agreement had been reached for the Telangana state government to borrow nearly Rs 13,000 crore from the Indian Railway Finance Corporation (IRFC) in connection with the merger of Metro Phase 1 with Larsen and Toubro (L&T).

Context

Kishan Reddy alleged that the central government had offered 'certain key suggestions' to ensure the loan could be repaid safely without the metro sinking into losses. He directly blamed CM Revanth Reddy for rejecting those suggestions 'without prior thought', saying this unilateral decision was the root cause of the current impasse.

The minister's remarks frame the financing breakdown as a consequence of the state government's own actions, pushing back against what he characterised as a misleading narrative being promoted by the Chief Minister.

Policy Backdrop

Hyderabad Metro Rail Phase 1 opened its first corridor for commercial operations in 2017, with L&T serving as the private concessionaire for construction and operations. IRFC, a central public sector undertaking, has extended financing to multiple state metro projects since the 2010s as part of the central government's support framework for urban rail infrastructure.

The proposed Rs 13,000 crore loan from IRFC was linked to the process of merging or restructuring L&T's role in the Phase 1 project — a complex financial exercise that typically requires alignment between the state government, the concessionaire, and the lending institution on repayment safeguards.

Stakeholders and Impact

Telangana taxpayers and Hyderabad commuters are the primary stakeholders in the metro's financial health. A stalled loan restructuring deal could affect the operational continuity and expansion of the metro network, which serves lakhs of daily commuters across the city.

The political dimension is equally significant. Telangana shifted from BRS to Congress rule after the December 2023 assembly elections, and centre-state friction over infrastructure financing has become a recurring flashpoint. Kishan Reddy, as BJP's Telangana state president, has a direct interest in holding the Revanth Reddy government accountable on such high-visibility projects.

What's Next

The Telangana government is expected to respond formally to these allegations, potentially clarifying its position on the IRFC loan terms and the central government's suggested conditions. Any movement on the loan restructuring is also likely to surface in state budget discussions or communications from the Union Ministry of Housing and Urban Affairs.

With Hyderabad Metro Phase 2 expansion plans in the pipeline, the resolution — or continued deadlock — of the Phase 1 financing dispute will have direct implications for the city's long-term urban transit ambitions.