CM Revanth Reddy Writes to Centre on Hyderabad Metro Phase-II
Synopsis
Chief Minister Revanth Reddy has written to Union Ministers Khattar and Kishan Reddy seeking immediate SBICAPS appointment for Hyderabad Metro Phase-I valuation and Phase-II funding study, warning that delays are causing operational uncertainty and rising costs.
Key Takeaways
CM Revanth Reddy wrote separate letters to Union Ministers M.L.
Khattar (Housing and Urban Affairs) and G.
Kishan Reddy (Coal and Mines) on 5 July 2026 .
The letters seek expedited approval for Hyderabad Metro Phase-II expansion and faster completion of the state's takeover of Phase-I assets.
A 23-24 June 2026 high-level meeting had agreed to appoint SBICAPS as central nodal agency for asset valuation, loan refinancing, and Phase-II funding mobilisation.
The Ministry of Housing and Urban Affairs has not yet finalised the Terms of Reference (ToR) for SBICAPS, causing operational uncertainty in Phase-I management.
CM warned that continued delay risks significant cost escalation and further postponement of Phase-II project execution.
The CM urged both ministers to personally intervene to complete the SBICAPS appointment immediately .
The Chief Minister's Office of Telangana announced on Sunday, 5 July 2026 that Chief Minister Revanth Reddy has written separate letters to two Union Ministers urging expedited approvals for Hyderabad Metro Rail Phase-II expansion and faster completion of the state government's takeover of Phase-I assets.
Context
Chief Minister Revanth Reddy addressed the letters to Union Minister for Housing and Urban Affairs Manohar Lal Khattar and Union Minister for Coal and Mines G. Kishan Reddy. The letters call for personal intervention by both ministers to immediately complete the appointment of SBI Capital Markets (SBICAPS) as the central nodal agency for the metro project's financial review.
The CM recalled high-level meetings held on 23 and 24 June 2026 between state and central government representatives, during which both sides had agreed to appoint SBICAPS to conduct a comprehensive study covering asset valuation of Phase-I, refinancing of high-interest loans, and long-term funding mobilisation for Phase-II.
Policy Backdrop
Hyderabad Metro Rail Phase-I became operational in 2017 under a public-private partnership framework involving L&T Metro Rail, with central government sanction through the Ministry of Housing and Urban Affairs. The Telangana government has been pursuing a formal takeover of Phase-I assets as a precondition for seamlessly advancing the Phase-II expansion.
Central government approvals for metro rail projects — including Terms of Reference (ToR) for nodal agency mandates, Detailed Project Report (DPR) clearances, and financial restructuring support — flow through the Ministry of Housing and Urban Affairs. Delays in finalising ToR documents are a recurring friction point in centre-state coordination on urban mobility projects across India.
The CM's letters specifically flag that despite the June agreement, the Ministry of Housing and Urban Affairs has not yet finalised the Terms of Reference (ToR) for SBICAPS, and the formal assignment of responsibilities to the agency remains pending.
Stakeholder Impact
The CM warned that the ongoing delay is causing day-to-day operational difficulties and uncertainty in the management of Phase-I, while simultaneously slowing down DPR approvals and fund-mobilisation processes for Phase-II. He cautioned that continued postponement risks significant cost escalation and further delays in project execution.
Hyderabad commuters and urban local bodies stand to be most directly affected. The Phase-II expansion is described by the CM as critical to meeting the city's future public transport needs, and any delay compounds pressure on an already stretched urban transit network in one of India's fastest-growing metropolitan regions.
SBICAPS, as the designated central nodal agency, is expected to play a pivotal role in determining the financial viability and structure of both the Phase-I asset transfer and the Phase-II build-out. Its formal appointment is a prerequisite for subsequent valuation reports and funding frameworks.
What's Next
The immediate watch point is whether the Ministry of Housing and Urban Affairs finalises the ToR and formally assigns SBICAPS its mandate in response to the CM's letters. Once SBICAPS is appointed, its valuation and refinancing study will set the financial parameters for the Phase-I takeover and shape the funding architecture for Phase-II corridors.
The CM expressed confidence that prompt central intervention would allow decisions taken jointly by the centre and state to be implemented without further delay — enabling the Phase-I handover to be completed and Phase-II expansion work to proceed on schedule. The pace of response from both Union Ministers will signal the centre's priority level for Hyderabad's metro infrastructure in the near term.
Frequently Asked Questions
What is the current status of Hyderabad Metro Phase-II?
Phase-II is in the approvals and funding-study stage. CM Revanth Reddy has written to Union Ministers seeking immediate appointment of SBICAPS as nodal agency to conduct valuation, refinancing, and long-term funding studies before construction can advance.
Why has CM Revanth Reddy written to Union Ministers about the metro?
The CM wrote to flag delays in finalising the Terms of Reference for SBICAPS — a step both the centre and state agreed to at a June 2026 meeting — and to urge personal ministerial intervention to unblock the process.
What is SBICAPS and why is it important for Hyderabad Metro?
SBICAPS (SBI Capital Markets) is a central government nodal agency designated to study the financial valuation of Phase-I assets, refinancing of high-interest loans, and funding options for Phase-II expansion of the Hyderabad Metro Rail.
What was decided in the June 2026 meeting between Telangana and the Centre on metro?
At high-level meetings on 23 and 24 June 2026, both sides jointly agreed to appoint SBICAPS to handle Phase-I asset valuation, loan refinancing, and long-term financial planning for Phase-II — but the Ministry of Housing and Urban Affairs has not yet finalised the Terms of Reference.
What happens if Hyderabad Metro Phase-II is delayed further?
CM Revanth Reddy has warned that continued delays will cause significant cost escalation, disrupt daily Phase-I operations, and postpone DPR approvals and fund mobilisation — ultimately delaying the expansion of public transport in Hyderabad.
