Hyderabad Metro Phase-II may follow 50:50 funding model
Centre, State may jointly fund Hyderabad Metro Phase-II rollout
Union Minister Manohar Lal Khattar indicated the Centre and Telangana may split costs equally for Hyderabad Metro Phase-II, with 160 km of new routes proposed and a final decision expected by March.
Hyderabad’s long-awaited Metro Rail Phase-II expansion may finally be gaining momentum, with strong indications that the project could move forward under a 50:50 cost-sharing model between the central and state governments. Union Minister for Housing and Urban Affairs Manohar Lal Khattar, speaking in Hyderabad on Tuesday, signaled that both governments were actively exploring an equal partnership to push the project into its next major stage of development.
Khattar was addressing a regional conference of urban development ministers and officials from southern states and union territories, where a range of national and state-level urban infrastructure issues were discussed. Telangana Chief Minister A. Revanth Reddy attended the event as the chief guest, underscoring the significance of the discussions for the state. Following the conference, Khattar held a joint press briefing with Telangana IT and Industries Minister Sridhar Babu and Andhra Pradesh Municipal Administration Minister Narayana.
During the event, Khattar revealed that the Centre has received formal proposals to build an additional 160 km of metro network across Hyderabad—an ambitious expansion that could dramatically reshape mobility in one of India’s fastest-growing cities. He said the Ministry of Housing and Urban Affairs is currently assessing the feasibility of these route proposals.
months would be crucial for the project’s future.
His remarks carry added weight given the Telangana government’s recent announcement that it has reached a preliminary agreement to take over the Hyderabad Metro project from L&T, which has been the concessionaire since the metro’s inception. With the state showing eagerness to expand the network and the Centre expressing willingness to participate, the likelihood of a shared funding model now appears stronger than ever.
Khattar stated clearly that both governments were aligned on the need to accelerate metro expansion in Hyderabad.
The potential 50:50 model is particularly significant in the current urban development climate, where state governments often depend heavily on central support for capital-intensive transportation projects. Hyderabad’s rapid urban growth, congested road networks, and rising population have amplified calls for a more extensive metro system, making Phase-II one of the most keenly anticipated infrastructure decisions for the city.
Khattar did not limit his comments to Hyderabad alone. He acknowledged growing demands for metro systems in Visakhapatnam and Vijayawada in neighbouring Andhra Pradesh. “We will examine these proposals and make a decision accordingly,” he assured. The Centre, he added, was also evaluating development plans for the state’s capital region, Amaravati. “We will provide the necessary funds for its growth based on the current area and development plans,” Khattar said, suggesting renewed attention to the region’s long-delayed urban vision.
The Telangana government, meanwhile, continues to push for major infrastructure improvements beyond the metro. Khattar confirmed that proposals have been submitted for the redevelopment of the Musi riverfront. He acknowledged the need for better coordination and faster utilisation of central funds, pointing out that some sanctioned amounts remained underutilised. “I asked state officials why allocated funds for urban development are not being utilised effectively,” he said, noting that financial efficiency was as important as planning.
Telangana IT and Industries Minister Sridhar Babu disclosed that a dedicated testing laboratory had been approved to monitor the quality of Musi River water—an important step in the river’s long-pending rejuvenation. He also reiterated that discussions with the Centre had covered the possible 50:50 funding model for completing the metro expansion.
As Hyderabad continues to expand outward and upward, the possibility of a jointly funded Metro Phase-II brings renewed hope for faster, cleaner, and more efficient public transport. The coming months will determine whether the city finally receives the green signal for the transformative expansion it has been waiting for.