Union Minister G. Kishan Reddy attributed the delay in the disbursal of a ₹13,527 crore loan from the Indian Railway Finance Corporation (IRFC) for the Hyderabad Metro Rail (HMR) Phase I takeover from L&T Metro Rail Hyderabad (L&TMRH) to what he described as a ‘small technical issue’, even as the matter escalates into a political row with the Telangana government.

Addressing a press conference in New Delhi on Tuesday, Mr. Kishan Reddy said the issue revolves around how loan repayment is to be prioritised. According to him, Union Minister for Housing and Urban Affairs Manohar Lal Khattar informed that the Telangana government had initially agreed — at the time of signing the pact with IRFC — to prioritise loan repayment through HMR revenues. However, the Urban Affairs Ministry sought to prioritise operations and maintenance expenses instead.

Explaining the Centre’s position, Mr. Kishan Reddy noted that metro rail systems across the country typically utilise revenue first for operational costs before repaying loans. “These are technical and financial issues that can be resolved through discussion between the Ministry of H&UA and the State government,” he said.

The Secunderabad MP also claimed he was ‘unaware’ of the IRFC loan disbursal being stalled until Chief Minister A. Revanth Reddy raised the issue in his press conference at Hyderabad on Monday. Reaffirming the need for expanding metro rail connectivity and the Multi-Modal Transport System (MMTS) in Hyderabad, Mr. Kishan Reddy denied allegations that he had obstructed the project.

“The BJP does not have a culture of stalling projects. If changes are required, we state them openly,” he said, while offering to facilitate a meeting between the Chief Minister and Mr. Khattar in New Delhi to resolve the matter, including issuance of a ‘No Objection Certificate’ (NOC) for the projects. “I am ready to accompany him if he comes here,” he said.

Mr. Kishan Reddy also rejected claims that the Centre discriminates against non-BJP governed States, asserting that it has already agreed in principle to a 50:50 cost-sharing model under a JV (Joint Venture) for the proposed HMR Phase II 2A 76.4 km and Phase 2B 86.1 km.

The Minister’s remarks come in response to allegations by Chief Minister Revanth Reddy, who accused him of ‘obstructing’ both the Phase I takeover and approvals for Phase II expansion. The controversy has intensified after IRFC signed an agreement last month with senior Telangana officials for the loan, but failed to release funds as per schedule, placing the takeover process in uncertainty.

Mr. Kishan Reddy further maintained that the issue lies between the State government and the MoHUA, rather than with him personally. He emphasised his track record in pushing development projects in Telangana, citing progress in MMTS Phase II, highway expansion, railway station modernisation and the Kakatiya Textile Park.

Calling for dialogue over confrontation, Mr. Reddy accused the Chief Minister of ‘politicising’ the issue and attempting to deflect attention from governance challenges. “Problems cannot be solved through criticism alone,” he said, urging constructive engagement to move the project forward.