The highly anticipated Hyderabad Metro Rail Phase II expansion remains under active consideration despite the absence of dedicated funds in the Union Budget. Senior government officials have confirmed that approvals for the ₹24,269 crore project are expected in the coming months, as it progresses through technical evaluations.
Project Overview and Evaluation Process
The second phase of the Hyderabad Metro Rail project aims to expand the metro network by 76.4 km across five corridors in the city. The proposal is currently undergoing a detailed technical evaluation by the Union Ministry of Housing & Urban Affairs, with key ministries such as railways and surface transport also involved in the assessment.
Although the recent Union Budget did not allocate funds for the project, officials remain optimistic. A senior government official stated that since the project aligns with central guidelines for metro rail joint ventures, there is a strong possibility of securing approvals soon.
Funding and Financial Structure
To ensure the smooth execution of the project, the Telangana government is seeking a sovereign guarantee from the Centre. This step is crucial to securing funding from international financial institutions like:
- Japan International Cooperation Agency (JICA)
- Asian Development Bank (ADB)
- New Development Bank (NDB)
A sovereign guarantee would enable the project to receive loans at concessional interest rates, making financial execution more feasible.
Breakdown of the ₹24,269 Crore Funding Structure:
- 30% (₹7,313 crore) – Telangana Government
- 18% (₹4,230 crore) – Central Government
- 48% (₹11,693 crore) – External Loans
- 4% (₹1,033 crore) – Public-Private Partnership (PPP) Investments
Officials also highlighted that nearly 10% of the Centre’s capital expenditure was unutilized last year, increasing the likelihood of securing funds for the project. Infrastructure projects, including metro rail expansion, remain a priority despite fiscal constraints.
Project Scope and Expected Benefits
The Hyderabad Metro Rail Phase II expansion aims to enhance urban connectivity and provide a sustainable transportation solution for the city. The new corridors include:
Proposed Metro Routes:
- Nagole to Shamshabad RGIA (Airport Corridor): 36.8 km
- Raidurg to Kokapet Neopolis: 11.6 km
- MGBS to Chandrayangutta (Old City Corridor): 7.5 km
- Miyapur to Patancheru: 13.4 km
- LB Nagar to Hayatnagar: 7.1 km
These routes will significantly reduce traffic congestion and improve public transport access for millions of Hyderabad residents. The project will also boost real estate development, ease daily commutes, and contribute to Hyderabad’s smart city growth.
Optimism for Approval Following Chennai Metro’s Success
The approval of Chennai Metro Phase II in October 2024 has created a positive precedent for similar projects in India. Officials believe that Hyderabad Metro Rail Phase II could receive funding and approvals soon, benefiting from this momentum.
With discussions still ongoing, there is cautious optimism that the project will receive the necessary clearances, further enhancing Hyderabad’s transport infrastructure and urban mobility.
