Union Coal Minister G Kishan Reddy reported that the Centre was, in principle, ready to participate in the second phase of the Hyderabad Metro project on a 50:50 cost sharing basis with the state government. He reviewed key development projects in Hyderabad with the Union Minister for Housing and Urban Affairs, Manohar Lal, in Delhi, where the scope and documentation requirements for the proposal were discussed. The meeting considered timelines and the technical inputs required for viable planning and implementation of the extended network.

Manohar Lal informed Reddy that the Centre would take a final decision after receiving the Detailed Project Report (DPR) and other technical details from the state government, and indicated that a complete DPR would be critical for appraisal. The minister conveyed that the Centre would positively consider the state government's proposal for the 162 km second phase, subject to technical review and alignment clearances. Officials noted that confirmations on funding and land acquisition modalities would follow standard appraisal procedures.

The Centre also signalled cooperation with the state to improve infrastructure and basic amenities in Hyderabad and reported approvals for urban sanitation measures. The release stated that the Centre had sanctioned 39 sewage treatment plants to clean the Musi River under the Atal Mission for Rejuvenation and Urban Transformation scheme (AMRUT) at Rs 39,750 million (mn). That initiative, launched in 2021, aims to provide functional tap water connections to households in statutory towns and to strengthen sewerage and septage management across selected urban centres.

According to a government release, the AMRUT measures form part of efforts to extend service coverage in the 500 cities included under the first phase and to support urban rejuvenation objectives. Officials reiterated that the final funding arrangement for the Hyderabad Metro second phase would be confirmed only after receipt and evaluation of the DPR and associated technical documents. The state government is expected to submit the required material to enable the Centre to reach a definitive decision on implementation and cost sharing.