SBICAPS to prepare blueprint for metro takeover, Phase II rollout

metro india news  I hyderabad

Discussions between the Telangana government and the Centre on the future of Hyderabad Metro Rail have yielded progress, with both sides agreeing on a structured roadmap for the takeover of Metro Phase I and the expansion of Phase II.

Chief Minister A. Revanth Reddy held a series of meetings in New Delhi over the past two days with Union Ministers to resolve pending issues relating to Hyderabad Metro Rail. On Monday night, he held detailed discussions with Union Railway Minister Ashwini Vaishnaw and Union Minister for Coal and Mines G. Kishan Reddy. The deliberations continued on Tuesday morning at the residence of Union Minister for Housing and Urban Affairs Manohar Lal Khattar.

The meeting was attended by Manohar Lal Khattar, Ashwini Vaishnaw, G. Kishan Reddy and Chief Minister Revanth Reddy. The leaders reviewed matters relating to the valuation and proposed takeover of Hyderabad Metro Rail Phase I, arrangements for raising funds required for the acquisition, selection of lending institutions, and the expansion of Metro Phase II.

As a key outcome of the discussions, the Centre and the State Government agreed to appoint a consultant to undertake a comprehensive assessment of all financial, technical and operational aspects connected with the Metro project. SBICAPS has been selected as the consultant for the exercise.

SBICAPS will conduct a detailed study covering the valuation of Metro Phase I, financing options for its acquisition, funding requirements for Metro Phase II, project costs, and other related issues. The consultant's report will serve as the basis for future decisions and the formulation of an implementation roadmap.

To ensure smooth coordination and expedite the process, the meeting also decided to nominate one officer from the Central Government and the Special Secretary of the Telangana Municipal Administration and Urban Development Department as nodal representatives. These officers will work in close coordination with SBICAPS and other stakeholders to facilitate timely completion of the study and subsequent decision making. The decisions are expected to accelerate efforts to resolve pending issues relating to Hyderabad Metro Rail and advance plans for its future expansion.

Metro Deal Rewinds

State, Centre opt for new valuation despite earlier Loan exercise

1. No clarity on ₹13,527 crore IRFC loan after high profile Delhi meetings
2. SBI CAPS to reassess valuation, funding and takeover modalities
3. Earlier state initiated valuation exercise appears to have lost relevance

The much publicised Delhi meetings between Chief Minister A. Revanth Reddy and Union Ministers Ashwini Vaishnaw, Manohar Lal Khattar and G. Kishan Reddy have raised fresh questions over the future of Hyderabad Metro Rail Phase I acquisition, with indications emerging that the process may have effectively returned to the starting point.

For months, the Telangana government maintained that it had completed the valuation exercise for the proposed takeover of Hyderabad Metro Phase I from L&T Metro Rail Hyderabad and had subsequently approached the Indian Railway Finance Corporation (IRFC) for a loan of Rs 13,527 crore to facilitate the acquisition. The state government had even alleged that the loan proposal, which was reportedly agreed to in principle, was delayed due to political intervention from the Centre.

However, the outcome of the latest Delhi meetings paints a different picture. In a social media post after the meeting with Union Urban Affairs Minister Manohar Lal Khattar, Chief Minister Revanth Reddy stated that the Centre and the State had jointly decided to appoint SBI CAPS as consultant to study the valuation of Metro Phase I, modalities for takeover, funding requirements, selection of lending institutions and financial arrangements for Metro Phase II expansion. Future decisions, he said, would be taken based on the consultant's report.

The announcement has triggered speculation that the earlier valuation exercise undertaken by the Telangana government may no longer form the basis for the acquisition proposal. If SBI CAPS is now expected to reassess valuation, funding structures and lender selection, the process appears to have been effectively reset with both the Centre and the State participating jointly in the exercise along with banking and financial experts.

Notably, neither the Chief Minister nor Union Minister G. Kishan Reddy offered any clarity on the immediate release of the proposed Rs 13,527 crore IRFC loan. The issue found no mention in their public statements following the meetings.

Kishan Reddy disclosed that Revanth Reddy had written to him seeking appointments with the concerned Union Ministers and that he had facilitated the meetings. While describing the discussions as positive, he too stopped short of announcing any decision on the IRFC financing proposal.

The absence of any concrete commitment on funding, coupled with the decision to undertake a fresh valuation and financial assessment through SBI CAPS, has led to questions about whether the Metro acquisition proposal has gone back to square one. For now, the focus has shifted from securing the IRFC loan to conducting another round of evaluation and financial due diligence before any final decision on the takeover can be taken.

Rs 30,000 Crore Metro assets under threat: KTR

BRS Working President K.T. Rama Rao on Tuesday launched a sharp attack on Chief Minister A. Revanth Reddy and Union Minister G. Kishan Reddy over the Hyderabad Metro Rail issue, alleging that both leaders were staging a political drama to mislead the public while concealing a larger conspiracy surrounding Metro assets and expansion plans.

Addressing an extended meeting of BRS cadres in Serilingampally, KTR alleged that Revanth Reddy and Kishan Reddy were pretending to be at odds in Hyderabad but were working together in Delhi to divert public attention. He claimed that the recent meetings and statements on Hyderabad Metro Rail were aimed at creating political mileage rather than addressing the city's transportation needs.

KTR alleged that the State government was eyeing Metro related lands and assets worth nearly Rs 30,000 crore. He claimed that valuable land parcels located around Metro corridors were being targeted for private interests and accused the government of pressuring L&T officials. He further alleged that the State Government was attempting to transfer L&T's debt burden of around Rs 14,000 crore onto the people of Telangana while pursuing control over Metro assets.

Questioning the BJP's commitment to Hyderabad Metro expansion, KTR asked why the Centre had not approved the Metro extension proposals submitted during the previous BRS government, including the proposed corridor from Lakdikapul to Patancheru. He also criticised the Centre for extending Metro support to several cities while allegedly neglecting Telangana's requests.

KTR accused the Congress government of scrapping the Airport Metro project planned by the previous BRS administration. He said the project could have significantly reduced traffic congestion and improved connectivity to the airport. According to him, the cancellation reflected a lack of vision and planning on the part of the present government.

Recalling the development of Hyderabad Metro Rail, KTR said the BRS government under K. Chandrashekar Rao played a major role in completing and operationalising the project after it was initiated during the Congress era. He alleged that a major scandal would eventually emerge in connection with Metro assets and reiterated that the city required a clear and transparent Metro expansion strategy.

KTR also criticised the State Government's policies on various development projects and welfare schemes, alleging that it was reversing several initiatives undertaken during the previous BRS regime.