Hyderabad Metro Expansion: Phase-2 Gets Central And Global Funding Boost

In a landmark move, the Revanth Reddy-led Telangana government has approved the long-awaited expansion of the Hyderabad Metro Rail under Phase 2. The state has sanctioned thousands of crores for the project, with formal government orders already issued. The new phase will be developed through a joint venture model.

Chief Minister Revanth Reddy had earlier visited Delhi to attend the NITI Aayog meeting, during which he met with Prime Minister Narendra Modi. At the meeting, he submitted key infrastructure proposals, including the Outer Ring Road development, the Ring Railway Project, the Hyderabad-Bengaluru Defense Corridor, and the crucial Hyderabad Metro Rail Phase-2.

The Metro's existing Phase-1 includes three corridors stretching across 69 kilometers. Revanth Reddy highlighted that Phase-2 is estimated to cost around ₹22,000 crore. Following his pitch in Delhi, the project has gained momentum.

The Telangana government has now officially approved the construction of Phase-2 (B) of the Metro at a cost of ₹19,579 crore. This phase will be funded as a joint venture. Of the total cost, the Telangana government will contribute ₹5,874 crore, which amounts to 30 percent of the funding-making it the largest single contributor.

The central government will provide ₹3,524 crore, accounting for 18 percent of the project cost. Additionally, ₹9,398 crore will be raised from international financial institutions including the Japan International Cooperation Agency (JICA), the Asian Development Bank (ADB), and the New Development Bank (NDB). These entities together will contribute 48 percent.

Under the public-private partnership (PPP) model, the state plans to raise another ₹783 crore, representing a 4 percent share in the funding structure. Orders to this effect have been issued by Ilambarti, Secretary of the Metropolitan Area and Urban Development Department.

The approval for Hyderabad Metro Phase-2 comes in the backdrop of several other major metro project clearances by the Centre. The Union government had approved ₹63,246 crore for Chennai Metro Phase-2 in October last year, ₹14,788 crore for Bengaluru Metro Phase-2 in April 2021, and ₹15,611 crore for Bengaluru Metro Phase-3 in August 2024.

Proposals for Hyderabad Metro Phase-2 were formally submitted to the Union Ministry of Housing and Urban Affairs on November 4, 2023. With this latest move, the Telangana government signals its intent to fast-track metro infrastructure and urban transit connectivity in Hyderabad.