Published Jun 23, 2026 | 11:30 AM ⚊ Updated Jun 23, 2026 | 11:30 AM
Hyderabad Metro. Credit: iStock
Synopsis: Union Railway Minister Ashwini Vaishnaw informed the Telangana chief minister that there are no pending issues from the Railways’ side regarding approvals or financing of the Hyderabad Metro Rail Phase-II. He said that the remaining matters need to be resolved with the Union Ministry of Housing and Urban Affairs.
Union Railway Minister Ashwini Vaishnaw is learnt to have informed Telangana Chief Minister A Revanth Reddy that there are no pending issues from the Railways’ side regarding approvals or financing of the Hyderabad Metro Rail Phase-II. He said that the remaining matters need to be resolved with the Union Ministry of Housing and Urban Affairs.
According to sources, Revanth Reddy and Union Coal and Mines Minister G Kishan Reddy met Vaishnaw in New Delhi on the evening of Monday, 22 June, to discuss issues related to the transfer of loans for Metro Phase-I and funding for the proposed Phase-II expansion. The meeting reportedly lasted for nearly two hours.
Sources said the Railway Minister clarified that the Union government had no role in holding back funds and advised the Telangana government to pursue the matter with Union Housing and Urban Affairs Minister Manohar Lal Khattar. Revanth Reddy and Kishan Reddy are scheduled to meet Khattar on Tuesday to discuss the issues further.
Also Read: How a Hyderabad man spent four years pushing FSSAI to act on rusted blades in food industry
The meeting assumes significance as it comes days after a war of words between the Telangana government and the BJP over allegations that Union Minister Kishan Reddy had stalled the release of nearly ₹13,600 crore lying with the Indian Railway Finance Corporation (IRFC) for the Hyderabad Metro project.
Revanth Reddy had recently accused the Union government of delaying the transfer of the amount, while Kishan Reddy denied the charges and asserted that the BJP does not believe in obstructing development projects.
Sources indicated that Kishan Reddy facilitated the appointment with the Railway Minister after the chief minister wrote to him seeking intervention on the matter.
Officials familiar with the discussions said the Union government reiterated that it had already extended ₹1,204 crore as Viability Gap Funding for the Hyderabad Metro Phase-I project and had been extending cooperation despite multiple revisions and changes in the Detailed Project Report submitted by the state government.
The Union government is also understood to have suggested two alternative models for Phase-II implementation, including an RRTS-based approach that could reduce project costs by nearly ₹10,000 crore. However, the Telangana government reportedly did not favour the proposal. Sources maintained that despite agreeing to consider the state government’s preferred model, the Centre was surprised by the criticism levelled against it.
Also Read: RS Praveen Kumar criticises Telangana government on Bandi Bageerath’s interim bail
During the interaction, the Railway Minister is learnt to have stressed that the Union government and its ministers function collectively and that cooperation between the Centre and the state was essential for taking projects forward.
After the meeting, Revanth Reddy described the discussions with Vaishnaw as “positive” and said the issue relating to loans through IRFC had been discussed in detail. He added that further deliberations would be held with Union Minister Manohar Lal Khattar on Tuesday.
The Union government is also learnt to have rejected claims that Japan was directly extending loans to the Hyderabad Metro project, maintaining that any such assertion was factually incorrect and that all financing arrangements would have to follow established procedures.
Meanwhile, the outcome of Tuesday’s meeting with the Ministry of Housing and Urban Affairs is expected to determine the future course of funding and approvals for the ambitious Hyderabad Metro Phase-II project.
