Key Facts
Telangana Chief Minister A. Revanth Reddy has written an open letter to Union Minister G. Kishan Reddy, urging the Centre to expedite the disbursement of a sanctioned IRFC loan for the takeover of Hyderabad Metro Rail (HMR) Phase I from L&T Metro Rail Hyderabad (L&TMRH). The Chief Minister also called for early approvals for the proposed Phase II of the metro project.
Details of the Loan and Takeover
The takeover involves acquisition of equity worth ₹1,461.47 crore and refinancing of existing project debt of ₹13,538.53 crore, totaling ₹15,000 crore. The state government has already deposited ₹6,461.47 crore as equity into an escrow account and paid ₹84.32 crore as an upfront fee to IRFC. Additionally, the government has provided sovereign-level repayment safeguards, including a Direct Debit Mechanism through the Reserve Bank of India (RBI).
Despite these measures, the disbursement has not occurred even after the scheduled drawdown date of June 15. The Chief Minister noted that IRFC had completed due diligence and approved the financing, but the funds remain unreleased.
Appeal to Union Ministers
In his letter, CM Revanth Reddy appealed to Union Minister G. Kishan Reddy to take up the matter immediately with IRFC and Railway Minister Ashwini Vaishnaw. He emphasized that the state has complied with all conditions stipulated by the lender and urged the Centre to ensure the loan is disbursed without further delay.
The Chief Minister also sought early approvals for HMR Phase II, which is estimated to cost ₹38,595 crore and cover 122.9 km. He proposed a 50:50 joint venture with the Centre for Phase II but indicated that the state is prepared to proceed using its own resources and institutional financing if there is further delay.
Impact and What Readers Should Know
The unified public-sector framework for Hyderabad Metro is expected to improve operational integration between Phase I (69.2 km) and the proposed Phase II. The takeover process was conducted transparently through an officers’ committee, including UP Metro Rail Corporation MD Sushil Kumar, with every step communicated to the Centre.
CM Revanth Reddy has offered to meet Union Minister G. Kishan Reddy personally to provide further clarifications on the issue.
FAQ
Why is the Hyderabad Metro loan delayed?
The IRFC loan of ₹15,000 crore for takeover of Phase I has not been disbursed despite the state meeting all conditions, including depositing equity and paying upfront fee.
What is the total cost of Hyderabad Metro Phase II?
Phase II is estimated to cost ₹38,595 crore for a 122.9 km network.
What steps has the Telangana government taken to secure the loan?
The government provided sovereign-level safeguards like a Direct Debit Mechanism through RBI, deposited ₹6,461.47 crore equity, and paid ₹84.32 crore upfront fee.