CM urges Kishan Reddy to intervene in pending HMR loan takeover

Chief Minister A. Revanth Reddy has appealed to Union Minister for Coal and Mines G. Kishan Reddy to ensure that the approved IRFC loan for taking over Hyderabad Metro Rail (HMR) Phase I from L&T Metro Rail Hyderabad (L&TMRH) is disbursed without further delay and that HMR Phase II receives all necessary approvals from the Center at the earliest.

In an open letter to BJP leaders and Secunderabad MPs, the Chief Minister urged him to immediately take up the matter with IRFC and Railway Minister Ashwini Vaishnaw and ensure the release of the sanctioned funds. He noted that the central public sector enterprise has already completed its due diligence and approved the financing.

Mr. Revanth Reddy said that the government has provided repayment guarantees at the sovereign level, including the direct debit mechanism through the RBI. The company also deposited ₹ 6,461.47 crore as equity in an escrow account and paid ₹ 84.32 crore to IRFC as upfront fee.

Although the drawdown date was June 15, the disbursement did not take place despite the government fulfilling all the conditions set by the lender, he said.

The Chief Minister said the government has addressed concerns regarding the operational integration of the “privately” owned HMR Phase I (69.2 km) and the proposed Phase II (122.9 km), estimated to cost ₹38,595 crore. The state accepted these concerns and took the step to take over Phase I to enable the metro system to function within a unified public sector framework.

He said the takeover includes equity acquisition of ₹1,461.47 crore and refinancing of existing project debt of ₹13,538.53 crore, totaling ₹15,000 crore. The process was conducted transparently through a committee of officers, including UP Metro Rail Corporation MD Sushil Kumar, with every step communicated to the Centre. While the state is seeking clearance for Phase II as a 50:50 joint venture with the Centre, it is also ready to move forward using its own resources and institutional funding to speed up implementation if there is any further delay, the CM said.

Mr. Revanth Reddy also offered to personally meet Mr. Kishan Reddy anytime and anywhere to provide further clarification on the matter.

Published – 16 Jun 2026 22:15 IST