Telangana Chief Minister A. Revanth Reddy on Monday, 15 June demanded that the Centre immediately release ₹13,600 crore in term loan refinancing funds to the state government for Hyderabad Metro Rail Phase I, which Telangana acquired from Larsen & Toubro Limited (L&T) in April. Revanth Reddy alleged that the Indian Railway Finance Corporation (IRFC) has been withholding the transfer despite a Japanese agency having already disbursed the funds to IRFC, and despite the state securing Reserve Bank of India (RBI) approval for the transfer.

Background: How Telangana Acquired the Metro

In April 2025, the Telangana government formally acquired Hyderabad Metro Rail Phase I from L&T for ₹15,000 crore — assets independently valued at ₹30,000 crore. The acquisition came after L&T reported annual operating losses of ₹400 crore despite having built assets worth ₹30,000 crore, and after the Centre stipulated that Phase II could only be constructed by L&T, which declined due to those losses.

On 25 May, the state signed a refinancing agreement with the IRFC. Under this arrangement, L&T Metro Rail Hyderabad Limited's (LTMRHL) outstanding debt of ₹13,538.53 crore as on 30 April — previously guaranteed by L&T — is to be refinanced with a guarantee issued by the Telangana government. A Japanese agency had provided the loan to IRFC at an interest rate of 4 per cent, compared to the existing bank rate of 8.25 per cent, offering the state significant interest savings.

What the Chief Minister Alleged

Addressing a press conference in Hyderabad, Revanth Reddy alleged that Union Minister for Mines and Coal G. Kishan Reddy had personally intervened to block the fund transfer. He claimed that Kishan Reddy met Union Urban Development Minister Manohar Lal on 20 May and Railways Minister Ashwini Vaishnaw on 21 May, reportedly urging them not to release the funds, citing potential political harm to the Bharatiya Janata Party (BJP) in Telangana.

'We even submitted a letter securing the Reserve Bank's approval, yet the loan transfer was blocked,' Revanth Reddy said. He directly challenged Kishan Reddy: 'Will you take the responsibility of releasing ₹13,600 crore today to Telangana or not?'

He also noted that the stalled Metro expansion affects constituencies represented by Kishan Reddy himself — Secunderabad — and three other BJP Members of Parliament, making the alleged political obstruction particularly contradictory.

The Phase II Question and Discrimination Charge

Revanth Reddy also pressed the Centre for clarity on its role in Hyderabad Metro Phase II. He said if the Centre is unwilling to participate as a 50 per cent partner, it should issue a No Objection Certificate (NOC) allowing Telangana to proceed independently. 'Just issue the NOC. We will bear the entire cost and carry out the Metro expansion ourselves,' he said.

He pointed to what he described as discriminatory treatment, noting that the Centre had sanctioned metro projects for Ahmedabad, Uttar Pradesh, and Visakhapatnam while denying approval to Telangana. 'You can see for yourselves the extent of the discrimination. I am not speaking out of political motives,' he said.

He appealed to Prime Minister Narendra Modi, Union Minister Kishan Reddy, and MP Etala Rajender to intervene and ensure the state receives its due funds.

What Happens Next

The funds were reportedly due to be transferred to the Telangana government on 1 June but remain blocked, according to the Chief Minister. The state has indicated it will pursue the matter at the highest levels of the Centre. The outcome of the Phase II partnership question will determine whether Hyderabad's metro network expansion proceeds under a joint Centre-state model or entirely through state financing — a decision with significant implications for the city's public transport future.