Published Jun 17, 2026 | 9:36 AM ⚊ Updated Jun 17, 2026 | 9:37 AM
Union Minister G Kishan Reddy (L), Telangana CM Revanth Reddy. Credit: x.com/kishanreddybjp, x.com/revanth_anumula
Synopsis: Telangana CM Revanth Reddy accused Union Minister Kishan Reddy of delaying ₹13,538 crore IRFC funds for Hyderabad Metro takeover, despite state compliance. He urged Centre’s support for Phase-II expansion. Kishan Reddy termed the issue “technical,” citing repayment prioritisation, and denied political bias, offering to mediate with MoHUA for approvals under the agreed 50:50 joint venture model.
A political row has erupted between Telangana Chief Minister A. Revanth Reddy and Union Minister G. Kishan Reddy over the delay in disbursal of more than ₹13,500 crore sanctioned by the Indian Railway Finance Corporation (IRFC) for the State government’s takeover of Hyderabad Metro Rail (HMR) Phase-I.
In an open letter addressed to Kishan Reddy on 16 June, the Chief Minister sought the Union Minister’s intervention to secure immediate release of the sanctioned funds and expedite approvals for Hyderabad Metro Rail Phase-II. He urged Kishan Reddy to take up the matter with Union Railway Minister Ashwini Vaishnaw and IRFC and sought an early meeting with the Railway Minister to resolve the issue.
Revanth Reddy said Hyderabad Metro Rail Phase-I, spanning 69 km with 57 stations, had significantly improved urban mobility in the city. He noted that the State government had proposed Phase-II comprising seven corridors covering 122.9 km at an estimated cost of ₹38,595 crore.
During the appraisal process, the Union Ministry of Housing and Urban Affairs (MoHUA) had expressed concerns over integrating a privately operated Phase-I network with a publicly implemented Phase-II system, prompting the State government to initiate the takeover of Phase-I.
According to the Chief Minister, the takeover involves acquisition of equity worth ₹1,461.47 crore and refinancing of debt amounting to ₹13,538.53 crore, taking the total transaction value to ₹15,000 crore. He said the process was overseen by an officers’ committee constituted by the State government, which also included a nominee of the Centre.
The Chief Minister stated that IRFC had conducted due diligence, assessed the project’s viability and sanctioned the required financing. He said the State government fulfilled all conditions stipulated by the lender, including providing a government guarantee and an RBI-registered Direct Debit Mechanism.
Telangana had already deposited ₹1,461.47 crore towards the equity component in an escrow account and paid ₹84.32 crore as an upfront fee for the first tranche of financing, he said.
Expressing concern over the delay, Revanth Reddy pointed out that although the drawdown date had been fixed for June 15, 2026, the sanctioned funds had not been released. He maintained that the State government was entitled to timely disbursal after complying with all contractual obligations.
The Chief Minister also reiterated Telangana’s request for approval of Metro Rail Phase-II under a 50:50 joint venture model between the Centre and the State. He said that if approvals were delayed, the State was prepared to pursue the project through its own resources and institutional financing, subject to necessary clearances.
Noting that Hyderabad had slipped to the 9th position among metro rail cities in the country due to the absence of network expansion for more than a decade, he stressed the need for early implementation of the next phase.
Responding to the allegations, Kishan Reddy attributed the delay in loan disbursal to what he described as a “small technical issue” concerning the prioritisation of loan repayments. Addressing a press conference in New Delhi on Tuesday, he said the matter stemmed from financial and operational considerations rather than political interference.
According to the Union Minister, the Telangana government had initially agreed to prioritise repayment of the IRFC loan from metro revenues while signing the financing agreement. However, MoHUA subsequently suggested that operations and maintenance expenses should be accorded priority, in line with the practice followed by metro rail systems elsewhere in the country.
Describing the issue as technical and financial in nature, Kishan Reddy said it could be resolved through discussions between the State government and MoHUA. He rejected allegations that he had obstructed the project and offered to facilitate a meeting between Revanth Reddy and Union Housing and Urban Affairs Minister Manohar Lal Khattar, including discussions on obtaining the required No Objection Certificate (NOC).
Kishan Reddy also dismissed claims that the Centre was discriminating against non-BJP ruled States and asserted that the Union government had already agreed in principle to a 50:50 cost-sharing arrangement under a joint venture model for the proposed Metro Phase-II corridors.
Maintaining that the issue was essentially between the State and MoHUA, he called for dialogue and constructive engagement to resolve the matter.
