Revanth Reddy writes to Union Ministers on Hyderabad Metro Rail plans

Telangana CM Revanth Reddy wrote to Union Ministers G Kishan Reddy and Manohar Lal Khattar, expressing concern over delays in the state's takeover of Hyderabad Metro Rail Phase-I and sanction for Phase-II, urging them to expedite the process.

Telangana Chief Minister A Revanth Reddy has written to Union Ministers G Kishan Reddy and Manohar Lal Khattar, following up on discussions held on June 23 and 24 regarding the approval of Hyderabad Metro Rail Phase-II and the takeover of Hyderabad Metro Rail Phase-I by the Government of Telangana.

Details of Agreed Action Plan

In his letters, the Chief Minister referred to discussions held with the Railway Minister on June 23 and the Union Housing and Urban Affairs Minister on June 24, in the presence of G Kishan Reddy, on the two inter-linked matters.

In the letter, Reddy said, it was agreed during the discussions that SBI Capital Markets Limited (SBI CAPS), an agency empanelled by the Government of India for such assignments, would be entrusted with the valuation and financial examination of Hyderabad Metro Rail Phase-I to facilitate its takeover by the Government of Telangana.

The Chief Minister said SBI CAPS would also examine possible options for refinancing the existing high-cost debt of Phase-I.

He added that since Hyderabad Metro Rail Phase-II would involve raising substantial debt, it would be appropriate for the same agency to examine the financing structure for Phase-II, including suitable long-term debt options and funding arrangements.

"As Phase-II will also involve raising substantial debt, it would be appropriate for the same agency to examine the financing structure for Phase-II, including suitable long-term debt options and funding arrangement," the letter stated.

Reddy said the Terms of Reference could be drafted by the Ministry of Housing and Urban Affairs in a manner that comprehensively covers valuation, refinancing and future debt-raising requirements for both phases.

He also informed the Union Ministers that the Government of Telangana had nominated the Special Chief Secretary, MA&UD Department, as the nodal officer for coordinating the exercise.

Concern Over Delays and Potential Cost Overruns

The Chief Minister further noted that it had been agreed that SBI CAPS would be entrusted with the assignment immediately so that the integrated exercise relating to the Phase-I takeover and Phase-II expansion could commence without delay.

However, expressing concern over the progress made since the discussions, Revanth Reddy said SBI CAPS had not yet been entrusted with the assignment, and the Terms of Reference had not been finalised or communicated to the Government of Telangana.

"The prolonged process for takeover of Phase-I is creating operational uncertainty and day-to-day challenges for the project. At the same time, the delay is also affecting the sanction of the Phase-II DPRs and the tying up of suitable funding arrangements. This is postponing project implementation and is likely to increase the cost of Phase-II due to avoidable time overrun and escalation," the Chief Minister wrote.

CM Urges Ministers' Intervention to Expedite Process

Describing Hyderabad Metro Rail Phase-II as being of "immense importance" to the future growth and mobility needs of Hyderabad, Revanth Reddy requested the Union Ministers to personally intervene with the Ministry of Housing and Urban Affairs and the Ministry of Railways to ensure that the assignment to SBI CAPS is entrusted at the earliest and that the Terms of Reference are finalised and communicated to the Government of Telangana.

"This will enable the decisions taken during the discussions to be implemented expeditiously, bring the Phase-I takeover process to its logical conclusion, and allow the Phase-II expansion to proceed without further delay," the letter added. (ANI)

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