As per our sources, Telangana Chief Minister A Revanth Reddy, speaking in Delhi on 31 October, said the state took over the Hyderabad Metro Phase 1 project from L&T on the advice of the Centre, as reported by Telugu Oneindia. He said the 70 km network is running at a loss of about Rs 600 crore a year and that the state took it over for about Rs 15,000 crore. Reddy claimed that a loan from IRFC at about 3 per cent interest, on which the state had paid about Rs 80 crore, was stopped on the Centre’s orders, and he blamed BRS leader KT Rama Rao and Union minister G Kishan Reddy. He said the state was willing to follow any proposal from the Centre and had no plans to go to court, and that the future of Phase 2 now lies with the Union government. These are the chief minister’s claims, and the Centre’s response was not part of the report.
This development matters because the funding of the takeover decides whether Hyderabad Metro can keep fares stable and pay for maintenance. A loss-making network now on the state’s books, without cheap central financing, puts pressure on Telangana’s budget. Phase 2 depends on central approval, so a political row over money could slow the next set of corridors.
In our expert opinion, the state is right to seek low-cost central financing, because a Rs 600 crore annual loss is too large to carry on expensive commercial loans. However, public blame between parties rarely speeds up a loan approval, and quiet talks with the Finance Ministry and IRFC would serve commuters better. We expect no central approval for Hyderabad Metro Phase 2 before 31 March 2027. Confidence: medium.
This is important for our readers because daily Hyderabad Metro services are not affected right now, so travel as usual this week. Keep an eye on any fare notice from the operator, since funding pressure often shows up first in fares and parking charges. This report rests on a single source, so treat the figures as the chief minister’s claims until they are confirmed.
Telugu Oneindia, 31 October 2026, https://telugu.oneindia.com/news/telangana/hyderabad-metro-phase-1-takeover-complete-phase-2-future-in-centres-hands-cm-revanth-reddy-512957.html
Photo by Prithwiraj Chakraborty on Pexels
Image used just for representational purposes. It may, or may not, have any relevance to the story.
