Published Jan 24, 2026 | 6:49 PM ⚊ Updated Jan 24, 2026 | 8:37 PM
Commuters are the receiving end as the project remains on paper.
Synopsis: The project has been stuck due to a complex interplay of financial, administrative, and political hurdles. Central to the delays is the pending takeover of Phase I operations from Larsen & Toubro (L&T), the private concessionaire that has managed the metro since its inception in 2017.
The much-anticipated Phase II of the Hyderabad Metro Rail (HMR) remains stuck in bureaucratic red tape and political delays, even as the city of more than one crore people grapples with escalating traffic congestion.
The project’s on-site construction work has been postponed indefinitely, despite repeated assurances of expediting the works from both state and central governments.
In response to a letter from Chief Minister A Revanth Reddy for clearances, Union Minister G Kishan Reddy said on Friday, 22 January: “I, in fact, want the metro phase II works to be grounded as early as possible. The project is in my Secunderabad constituency.”
He said that the Union Urban Development Ministry and the Telangana government were working together on the project. The state has recommended two officials to be included in the committee that the Urban Development ministry is constituting to take the project forward.
Kishan Reddy said the issues dogging the project, including borrowing money and Larson & Toubro’s withdrawal, will be resolved soon.
In the letter dated 18 January to Kishan Reddy, the chief minister underscored the urgency and requested expedited central approvals to kickstart the expansion. This comes amid accusations of foot-dragging from both sides, leaving commuters frustrated and the city’s precarious infrastructure strained.
The Hyderabad Metro Phase II, first proposed in 2017 under the previous Bharat Rashtra Samithi (BRS) government, aims to extend the existing 69.2 km Phase I network by an additional 76.4 km across five corridors.
These include Nagole to Shamshabad (36.8 km, connecting to the Rajiv Gandhi International Airport), Raidurg to Kokapet (11.6 km), MGBS to Chandrayangutta (7.5 km), Miyapur to Patancheru (13.4 km), and LB Nagar to Hayat Nagar (7.1 km).
The estimated cost is ₹24,269 crore, with provisions for a potential sixth corridor to a proposed “Future City” on the outskirts, pushing the total to around ₹32,237 crore.
A state Cabinet meeting on 18 January approved ₹2,787 crore for acquiring land for the project.
However, the project remained stuck due to a complex interplay of financial, administrative, and political hurdles. Central to the delays is the pending takeover of Phase I operations from Larsen & Toubro (L&T), the private concessionaire that has managed the metro since its inception in 2017.
L&T has expressed its desire to exit the project, citing cumulative losses of over ₹3,500 crore attributed to cost overruns, delayed land acquisitions, and operational challenges during the BRS regime.
In a letter to the Ministry of Housing and Urban Affairs (MoHUA) in September 2025, L&T highlighted “structural, financial, and regulatory challenges,” including unaddressed claims amounting to ₹5,000 crore.
The Telangana government has agreed to a ₹15,000 crore deal to assume L&T’s ₹13,000 crore debt and ₹Rs 2,000 crore for its equity, but the process remains incomplete.
The Centre has conditioned Phase II approvals on the successful handover of Phase I, insisting on the formation of a Joint Committee comprising two officials each from the state and central governments to oversee the transition and preparatory works.
Kishan Reddy, in a letter to Revanth Reddy on 16 January, emphasised this prerequisite:
“The Government of India has already agreed in principle to Phase-II, with the understanding that the takeover of Phase-I from L&T is completed first and coordination begins through the Joint Committee agreed earlier.”
Revanth Reddy responded swiftly, clarifying that nominations had been sent to MoHUA on 12 December 2025, and reiterated on 17 January, but were still pending approval.
“The State Government is maintaining continuous coordination with the Centre for the approval of Metro Rail Phase-II,” he wrote, requesting Kishan Reddy’s intervention to “expedite the approval of the long-pending Phase-II project at the earliest.”
Historical context reveals deeper political frictions. During the BRS tenure, Phase II proposals languished, with Kishan Reddy attributing delays to L&T’s losses under the previous government.
On 24 August 2025, he said, “L&T suffered losses of ₹3,500 crore after the BRS came to power and is not in a position to take up the second phase.”
Revanth Reddy, after assuming office in December 2023, revived the push, meeting Prime Minister Narendra Modi on 24 May last, to seek approval. “No expansion has been taken up in the last 10 years by the previous government. The present government has submitted comprehensive proposals for Phase-II.”
By 26 June, Telangana Congress leaders decried the Centre’s deferral of cabinet approval as “political discrimination,” with IT Minister D Sridhar Babu noting Revanth Reddy mooting a 50:50 joint venture at a meeting Revanth Reddy had with MoHUA Minister Manohar Lal Khattar on 19 June 2025.
L&T, in its September 15, 2025, communication, expressed its inability to participate in Phase II due to ongoing financial distress.
MoHUA Minister Khattar, in discussions with Kishan Reddy on January 14, reiterated that “the takeover of HMR Phase-I from L&T by the Telangana government must be completed first.”
Congress MLC M Vijayashanti, on 21 December 2025, alleged political motivations: “Delays in approving Phase-II may be politically motivated, accusing the Union government of slowing the process.”
Moving forward, resolving the L&T handover and activating the Joint Committee is expected to unlock progress. The Revanth Reddy Cabinet has indicated its intent with the allocation of funds for land acquisition, but central concurrence is mandatory.
(Edited by Majnu Babu).
