Metro Phase II Expansion Faces Delay After Political Dispute

16 Jun 2026 CW Team

The government said it had acquired the equity for Rs 14.61 billion (bn) and assumed responsibility for refinancing the company’s debt of Rs 135.58 bn. The debt was refinanced through a loan of Rs 136.51 bn sanctioned by the Indian Railway Finance Corporation and the takeover had raised expectations that expansion works would be accelerated. The chief minister characterised the subsequent delays as resulting from impediments raised by a local union minister and indicated that approvals were not progressing as anticipated.

The chief minister noted that permissions were in place but that the project faced fresh hurdles which could halt progress, and he emphasised that he had travelled to Delhi 50 times and met the prime minister five times during the past two-and-a-half years to seek approvals and funding. He also sought to place responsibility for securing approvals for the Musi project, the Metro expansion and construction of the Regional Ring Road with the union representative. He further alleged delays on related projects at the instance of other senior leaders.

The government highlighted agricultural procurement concerns and said it had procured 7.5 mn metric tonnes (t) of paddy while the Centre was prepared to procure 5.0 mn t, leaving 2.5 mn t of rice stocks seeking placement. The chief minister announced a timetable for the second phase of the Musi rejuvenation project, from Nagole to Gowrelli, to be launched within the next 100 days and called for cross-party cooperation to advance development in Hyderabad.

The state government indicated that plans to fast track the Hyderabad Metro Rail Phase II are likely to be delayed after the chief minister attributed fresh obstacles to a union minister. The chief minister addressed a public meeting in Uppal and conveyed that proposals for an over 122 km expansion, including a Nagole to Shamshabad route via Chandrayangutta, were submitted but have been stalled by political interference. He advised that the requirement from the Union Government that the Phase I network be operated by a single entity had led the state to acquire full equity in L&T Hyderabad Metro Rail as part of preparations for Phase II. The government said it had acquired the equity for Rs 14.61 billion (bn) and assumed responsibility for refinancing the company’s debt of Rs 135.58 bn. The debt was refinanced through a loan of Rs 136.51 bn sanctioned by the Indian Railway Finance Corporation and the takeover had raised expectations that expansion works would be accelerated. The chief minister characterised the subsequent delays as resulting from impediments raised by a local union minister and indicated that approvals were not progressing as anticipated. The chief minister noted that permissions were in place but that the project faced fresh hurdles which could halt progress, and he emphasised that he had travelled to Delhi 50 times and met the prime minister five times during the past two-and-a-half years to seek approvals and funding. He also sought to place responsibility for securing approvals for the Musi project, the Metro expansion and construction of the Regional Ring Road with the union representative. He further alleged delays on related projects at the instance of other senior leaders. The government highlighted agricultural procurement concerns and said it had procured 7.5 mn metric tonnes (t) of paddy while the Centre was prepared to procure 5.0 mn t, leaving 2.5 mn t of rice stocks seeking placement. The chief minister announced a timetable for the second phase of the Musi rejuvenation project, from Nagole to Gowrelli, to be launched within the next 100 days and called for cross-party cooperation to advance development in Hyderabad.

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