Hyderabad: Telangana govt’s takeover of Hyderabad Metro Rail Phase-I and the launch of the Phase-II expansion work are likely to be delayed after the state and Centre decided to appoint a new consultant, SBICAPS, to prepare a fresh roadmap for both phases of the mass transit system.The decision was taken following two days of consultations in New Delhi between chief minister Aa Revanth Reddy, Union railway minister Ashwini Vaishnaw, Union housing and urban affairs minister Manohar Lal Khattar and Union coal and mines minister G Kishan Reddy. The stakeholders agreed to appoint SBI Capital Markets Limited (SBICAPS) as the consultant for the exercise.Earlier, the state govt had engaged IDBI Capital for financial and legal due diligence, while the consultancy arm of Delhi Metro Rail Corporation carried out a technical review of the project.In April, the Telangana govt announced that it had acquired 100% equity in the 69-km Metro Phase-I project from L&T. The transaction was valued at around Rs 15,000 crore, comprising an equity component of Rs 1,461.47 crore and a state-guaranteed debt takeover of Rs 13,538.53 crore.SBICAPS, a subsidiary of the State Bank of India, will undertake a comprehensive study of the valuation of Metro Phase-I, examine options for raising loans required for the takeover and identify potential lending agencies. The consultant will also assess the proposed Metro Phase-II expansion, estimate project costs and recommend financing options.In an official statement issued on Tuesday, the chief minister’s office (CMO) said discussions between the chief minister and the Union ministers were productive and resulted in a consensus on appointing SBICAPS.“SBICAPS will conduct a comprehensive study on the valuation of Metro Rail Phase-I, the expansion of Phase-II and other related matters. The state govt and the Centre will decide the future course of action based on the report submitted by the consultant,” the CMO said.The development comes despite earlier indications that the Phase-I takeover process was nearing completion. Days before his visit to New Delhi, Revanth Reddy had stated that Hyderabad Metro Rail and the state govt had fulfilled all formalities and conditions required for securing a Rs 13,600-crore loan from the Indian Railway Finance Corporation (IRFC) to facilitate the takeover.The state govt had paid Rs 1,400 crore towards the transaction along with an additional fee of over Rs 80 crore as required under the norms. However, the approved loan has not yet been released.The CM went to New Delhi seeking clarity on the pending IRFC loan and the proposed Phase-II project. He had requested Kishan Reddy to facilitate meetings with the concerned Union ministers.Revanth Reddy apprised the Union ministers of the hurdles affecting both the takeover of Metro Phase-I and the launch of Phase-II. He held extensive discussions with Ashwini Vaishnaw and Kishan Reddy on Monday night and met Manohar Lal Khattar on Tuesday. Vaishnaw and Kishan Reddy also participated in the meeting held at Khattar’s residence.The CM and Union ministers also agreed to nominate senior officials to coordinate the consultant’s work. A senior Union government official and the Special Chief Secretary of Telangana’s Municipal Administration and Urban Development (MA&UD) Department will act as nodal representatives to ensure speedy completion of the study and related procedures.Sources familiar with the discussions said clarity on the release of the pending Rs 13,600-crore IRFC loan, the time frame for completion of the study and the future course of both Metro projects is expected after the consultant submits its report. Both govts have agreed to determine the next steps based on the findings and recommendations of SBICAPS.Box:Union minister G Kishan Reddy posted on X: “Given that Telangana chief minister @revanth_anumula had written letters twice seeking a meeting with railway minister Ashwini Vaishnaw, I took the initiative over the past two days to facilitate meetings with the two Union ministers in Delhi. As part of this effort, Revanth Reddy and I met railway minister @AshwiniVaishnaw on June 22, 2026 (Monday). Subsequently, on June 23, 2026, we met both Ashwini Vaishnaw and Union urban development minister @mlkhattar. Both meetings took place in a positive atmosphere. Representing Telangana in the Union cabinet, I remain committed to continuously doing my part for the state’s development and the welfare of its people. @MoHUA_India @RailMinIndia @TelanganaCMO.”
