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Hyderabad Metro phase-2 stuck in limbo: Should the centre or state be blamed?

Despite CM Revanth Reddy’s assurances that he would work together with the union government for Telangana development, the ambitious Hyderabad Metro Rail phase-2 project remains in limbo, with no approval from the Centre.

The state cabinet approved the Detailed Project Report (DPR) for Phase-2 on the 4th of last month and sent it to the Union Government for clearance. The proposed project involves a 76.4 km metro expansion at an estimated cost of Rs. 24,269 crore. The funding plan includes Rs. 4,230 crore from the central government, Rs. 7,313 crore from the state, Rs. 1,033 crore under the PPP component, and the remaining Rs. 11,693 crore through loans.

Despite the detailed planning, the Modi government has yet to respond. Meanwhile, the Centre recently approved the Delhi Metro phase-4 project, worth Rs. 6,230 crore, along with DPRs for metro rail expansions in three other states.

Observers are attributing the delay in Hyderabad Metro Phase-2 to both the state and central governments. Critics argue that the Revanth Reddy-led administration, already grappling with a financial crunch and struggling to fund welfare schemes, has not mounted sufficient pressure on the Centre. 

The impasse has fueled concerns that Hyderabad’s metro expansion is being sidelined, casting doubts on both the state’s resolve and the Centre’s prioritization of Telangana’s needs.