Telangana CM Pushes for Urgent Release of ₹13,527-Crore Hyderabad Metro Loan
Telangana Chief Minister A. Revanth Reddy is in New Delhi to expedite a ₹13,527-crore IRFC loan for the Hyderabad Metro. The ongoing delay in disbursement is imposing a daily interest burden of ₹2.5 crore on the state, prompting urgent appeals to Union ministers for immediate resolution.
Highlights
- •A. Revanth Reddy is in Delhi to secure the delayed ₹13,527-crore IRFC loan for Hyderabad Metro.
- •The loan delay is currently costing the Telangana government approximately ₹2.5 crore in interest every day.
- •Total interest burden has escalated to over ₹130 crore since the initial agreement was signed.
- •The CM is also pursuing federal approvals for the expansion of Hyderabad Metro Phase-II.
Chief Minister A. Revanth Reddy is currently in the national capital to address the urgent issue regarding the Hyderabad Metro Rail loan. The delay in the disbursement of the Rs 13,527-crore Indian Railway Finance Corporation (IRFC) loan is creating a significant financial strain on the state government, currently estimated at approximately ₹2.5 crore in additional interest burdens every single day.
The Chief Minister’s visit, which is scheduled to last until June 23, is primarily aimed at fast-tracking this financial process. A. Revanth Reddy has actively sought meetings with Union Finance Minister Nirmala Sitharaman and Union Railway Minister Ashwini Vaishnaw to resolve the deadlock. The state government is keen to conclude this refinancing initiative to significantly reduce its existing debt-servicing liabilities.
Financial Impact of the Metro Loan Delay
The situation stems from a tripartite agreement signed on May 25 involving HMR Limited, L&T Metro Rail (Hyderabad) Limited, and the IRFC. Following the takeover agreement on April 29, the state acquired full ownership of the project shares and committed to absorbing the outstanding debt. The plan was to refinance these existing, higher-interest loans through the IRFC, a process that officials expected to be completed by the end of May.
However, despite the state government fulfilling all stipulated conditions—including providing a state guarantee and establishing a mechanism for direct recovery via the Reserve Bank of India—the funds have not been released. Since the agreement’s signing, the interest burden has grown substantially. Initial projections suggested an interest cost of roughly ₹80 crore had the refinancing occurred within a month; however, with the current delay, this figure has already surpassed ₹130 crore.
Pushing for Infrastructure Development
Beyond the immediate financial concerns of the Hyderabad Metro Rail, the Chief Minister is also advocating for broader state infrastructure goals. This includes pushing for necessary approvals for Hyderabad Metro Phase-II. Previous attempts to address these issues, including discussions with Union Minister Manohar Lal Khattar, have yet to yield the final clearances required from the central railway ministry. Despite six months of detailed discussions and the acceptance of all regulatory conditions, the state is still awaiting the final go-ahead to stabilize its long-term infrastructure funding model.
