Key Facts
Telangana Chief Minister A. Revanth Reddy on Monday (June 15, 2026) directly accused Union Minister Kishan Reddy of blocking the release of ₹1,400 crore from the Indian Railway Finance Corporation (IRFC) for the second phase of the Hyderabad Metro Rail project. He claimed that the move was orchestrated at the behest of Bharat Rashtra Samithi (BRS) chief K. Chandrasekhar Rao and working president K.T. Rama Rao.
Details of the Allegation
Addressing a press conference at the State Secretariat in Hyderabad, CM Revanth Reddy stated that despite the state government meeting all conditions set by IRFC, the funds were withheld. He alleged that Kishan Reddy influenced Union Ministers Manohar Lal Khattar and Ashwini Vaishnaw, as well as Prime Minister Narendra Modi, to create obstacles. “Why isn’t the Centre clearing funds for Hyderabad Metro second phase when it was clearing Metro Rail projects for much smaller cities like Ahmedabad, Visakhapatnam and others?” he questioned. “I am directly blaming Mr. Kishan Reddy for his conspiracy and I have the evidence,” he added.
Demand for NOC
The Chief Minister urged Kishan Reddy to either facilitate the release of funds or grant a No Objection Certificate (NOC) to allow the state to execute the project independently. “The Centre must clarify whether it is willing to partner in the 122-km Metro Phase-II project or whether it will grant an NOC for Telangana to proceed independently. The people of Hyderabad deserve an answer,” he said. “You need not contribute your 50% share. Give us the NOC and we will bear the entire cost of Metro expansion,” he asserted.
Background of Phase 2
The state government had acquired the first phase of the metro from L&T after the company reported accumulated losses. Despite creating assets worth nearly ₹30,000 crore, L&T continued to incur annual losses of around ₹400 crore. The acquisition was also necessary to meet the Centre’s condition that the same operator handle both phases. Revanth Reddy claimed that the state acquired assets worth ₹30,000 crore for about ₹15,000 crore.
L&T had raised loans of ₹13,600 crore at an interest rate of 8.25%. The state government sought approval to transfer these liabilities and arranged lower-cost financing through IRFC and a Japanese agency at around 4% interest.
Political Angle
The Chief Minister recalled that the metro project was originally conceived during the Congress regime under former CM Y.S. Rajasekhara Reddy and then Union Minister S. Jaipal Reddy. He alleged that after the formation of Telangana, the previous BRS government caused delays, pushing the project completion from 2017 to later. The original cost of ₹15,000 crore escalated to ₹22,000 crore due to delays and the COVID-19 pandemic.
Revanth Reddy noted that much of the proposed Phase 2 expansion would benefit areas represented by BJP MPs, including Kishan Reddy’s Secunderabad and Etala Rajender’s Malkajgiri constituencies. He accused Kishan Reddy of “dancing to the tunes of KTR” to stall the project and defame the Congress government.
What Readers Should Know
- The Hyderabad Metro Phase 2 is a 122-km expansion project.
- The Centre’s share of funding is ₹1,400 crore, which has been withheld.
- The Telangana government is willing to bear the entire cost if the Centre grants an NOC.
- The dispute has political overtones involving Congress, BJP, and BRS.
FAQ
Why is the Centre not releasing funds for Hyderabad Metro Phase 2?
Telangana CM Revanth Reddy alleges that Union Minister Kishan Reddy is deliberately stalling the release of ₹1400 crore from IRFC at the behest of BRS leaders KCR and KTR.
What is the cost of Hyderabad Metro Phase 2?
The 122-km Phase 2 project is estimated to cost around ₹30,000 crore.
What is the alternative proposed by the Telangana government?
The state government has asked the Centre to either release its share or grant an NOC so that Telangana can fund the entire project itself.