Revanth Reddy urges Centre to expedite Hyderabad Metro Phase-II, Phase-I takeover
Hyderabad, July 5
Telangana Chief Minister A Revanth Reddy has written to Union Ministers G Kishan Reddy and Manohar Lal Khattar, following up on discussions held on June 23 and 24 regarding the approval of Hyderabad Metro Rail Phase-II and the takeover of Hyderabad Metro Rail Phase-I by the Government of Telangana.
In his letters, the Chief Minister referred to discussions held with the Railway Minister on June 23 and the Union Housing and Urban Affairs Minister on June 24, in the presence of G Kishan Reddy, on the two inter-linked matters.
In the letter, Reddy said, it was agreed during the discussions that SBI Capital Markets Limited (SBI CAPS), an agency empanelled by the Government of India for such assignments, would be entrusted with the valuation and financial examination of Hyderabad Metro Rail Phase-I to facilitate its takeover by the Government of Telangana.
The Chief Minister said SBI CAPS would also examine possible options for refinancing the existing high-cost debt of Phase-I. He added that since Hyderabad Metro Rail Phase-II would involve raising substantial debt, it would be appropriate for the same agency to examine the financing structure for Phase-II, including suitable long-term debt options and funding arrangements.
"As Phase-II will also involve raising substantial debt, it would be appropriate for the same agency to examine the financing structure for Phase-II, including suitable long-term debt options and funding arrangement," the letter stated.
Reddy said the Terms of Reference could be drafted by the Ministry of Housing and Urban Affairs in a manner that comprehensively covers valuation, refinancing and future debt-raising requirements for both phases. He also informed the Union Ministers that the Government of Telangana had nominated the Special Chief Secretary, MA&UD Department, as the nodal officer for coordinating the exercise.
The Chief Minister further noted that it had been agreed that SBI CAPS would be entrusted with the assignment immediately so that the integrated exercise relating to the Phase-I takeover and Phase-II expansion could commence without delay.
However, expressing concern over the progress made since the discussions, Revanth Reddy said SBI CAPS had not yet been entrusted with the assignment, and the Terms of Reference had not been finalised or communicated to the Government of Telangana.
"The prolonged process for takeover of Phase-I is creating operational uncertainty and day-to-day challenges for the project. At the same time, the delay is also affecting the sanction of the Phase-II DPRs and the tying up of suitable funding arrangements. This is postponing project implementation and is likely to increase the cost of Phase-II due to avoidable time overrun and escalation," the Chief Minister wrote.
Describing Hyderabad Metro Rail Phase-II as being of "immense importance" to the future growth and mobility needs of Hyderabad, Revanth Reddy requested the Union Ministers to personally intervene with the Ministry of Housing and Urban Affairs and the Ministry of Railways to ensure that the assignment to SBI CAPS is entrusted at the earliest and that the Terms of Reference are finalised and communicated to the Government of Telangana.
"This will enable the decisions taken during the discussions to be implemented expeditiously, bring the Phase-I takeover process to its logical conclusion, and allow the Phase-II expansion to proceed without further delay," the letter added.
— ANI
Reader Comments
Finally someone is serious about completing the metro network. I travel from Madhapur to Secunderabad daily and the traffic is unbearable. Phase-II connecting to the airport and other areas will be a game changer for IT corridor. But why does every project in India have to wait for Centre-State coordination? 🚇
Good move. The metro debt of Rs 14,000+ crore in Phase-I needs serious refinancing. SBI CAPS should look at Japan or Singapore models for long-term infrastructure financing. And the central government can't delay this - Hyderabad is the economic engine of Telangana and the country.
I used the metro during my trip to Hyderabad last year and found it quite efficient. Extending it makes sense for a growing city. However, I'm curious about the financial viability - these projects need a sustainable model, not just government bailouts. Hope SBI CAPS does a thorough analysis.
Why can't the Telangana government just proceed with Phase-II on its own instead of chasing the Centre? This back-and-forth is wasting taxpayers' money. Delhi-based bureaucrats don't understand Hyderabad's needs. Revanth should just go ahead and make the state take full ownership. Jai Telangana! 💪
As someone who works in the real estate sector, this metro expansion will boost property values along the new corridors by 20-30%. But the delay is a concern - every month of postponement means higher costs for the project and eventually higher fares for commuters. Hope both governments prioritise this.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.