Hyderabad Metro Phase Two could still get Centre’s nod

Telangana hopeful for approval of Hyderabad Metro Rail phase 2 project despite disappointing Union Budget

The Union Budget may have come as a crushing disappointment for Telangana with not a single new project approved for funding. But, all is not lost yet, as there is a bright chance for the second phase of the Hyderabad Metro Rail project of 76.4 km and costing an estimated ₹24,269 crore being cleared in the next couple of months, according to top government officials on Tuesday.

“The budget proposals presented in Parliament by Union Minister of Finance Nirmala Sitharaman will not have any impact on the metro rail project. It is because the Detailed Project Report (DPR) for the Part A of the works being planned across five corridors are being vetted by the Union Ministry of Housing & Urban Affairs,” they said.

The officials, wishing to remain anonymous, said that technical evaluation of the proposals is currently under way and the project details will be circulated to other related ministries, including the railways, surface transport and others.

“We are confident of the project getting the necessary approvals because it satisfies all the established norms for a joint venture with the Centre. The revised budget estimates for MRTS and Metro Rail projects across the country for 2024-25 has been ₹24,691 crore and proposals this year is to the tune of ₹31,239 crore. Hence, we stand a good chance,” said the officials.

What the State government is looking for is sovereign guarantee by the Centre which will entitle getting loans from multi-lateral agencies like the JICA (Japan International Cooperation Agency), ADB (Asian Development Bank), NDB (New Development Bank) and others at a nominal interest rate, they explained.

Telangana government’s share of the metro rail second phase project is 30% (₹7,313 crore) while the Centre’s share will be 18% (₹4,230 crore) and loans to be raised is to be around 48% (₹11,693 crores) with the PPP (public, private partnership) component would be 4% (₹1,033 crore).

It is pointed out about 10% of the Centre’s capital expenditure got surrendered last year, therefore, the metro project could get the nod. “The budget proposals will be followed up by appropriation bills are passed and post that revised estimates are also done. There will be a limitation for revenue expenditure not on capital expenditure especially for a project like ours,” they added.