Discussions on the proposed takeover of Hyderabad Metro Rail Phase-I by the Telangana government and funding support for the Phase-II expansion remained inconclusive after a high-level meeting between Telangana Chief Minister A. Revanth Reddy, Union Railway Minister Ashwini Vaishnaw and Union Coal and Mines Minister G. Kishan Reddy in New Delhi on Monday.
According to sources, the meeting focused on the Telangana government’s proposal to secure funding from the Indian Rail Finance Corporation (IRFC) for taking over the existing Metro Rail Phase-I network and for facilitating the Phase-II expansion project. However, several financial and procedural issues reportedly emerged during the discussions.
Chief Minister A. Revanth Reddy with Union Railway Minister Ashwini Vaishnaw and Union Coal and Mines Minister G. Kishan Reddy in New Delhi on Monday. | Photo Credit: arranged
Sources said Railway Minister Ashwini Vaishnaw raised questions over the role of IRFC in financing a metro rail project, noting that the corporation has traditionally funded railway infrastructure projects. He is understood to have expressed concern over reports that IRFC was willing to extend funding of around ₹13,000 crore to the Telangana government for the Metro takeover, particularly when the Centre is already considering financial support for the proposed second phase of the project.
The discussions also reportedly centred on the repayment mechanism, financial liabilities and the mode of servicing the proposed loan. Given the technical and policy-related complexities involved, it was decided that the matter should be taken up with Union Minister for Urban Affairs Manohar Lal Khattar for further examination.
Following the meeting, Chief Minister Revanth Reddy struck an optimistic note, describing the talks with the Railway Minister as positive.
The Chief Minister said discussions regarding the IRFC loan proposal for Hyderabad Metro had progressed constructively. He announced that a follow-up meeting with Urban Development Minister Manohar Lal Khattar would be held on Tuesday morning to further deliberate on the issue.
On the political front, Mr. Kishan Reddy joining the CM in the meeting has surprised all after the CM traded charges against Mr. Kishan Reddy for ignoring Telangana’s interests and deliberately obstructing the metro project.
Officials indicated that further clarity is likely to emerge after discussions with the Urban Development Ministry.
Published - June 22, 2026 11:52 pm IST