CM urges Kishan Reddy to intervene in stalled HMR take over loan

Chief Minister A. Revanth Reddy appealed to Union Minister for Coal and Mines G. Kishan Reddy to ensure that the sanctioned IRFC loan for the takeover of Hyderabad Metro Rail (HMR) Phase I from L&T Metro Rail Hyderabad (L&TMRH) is disbursed without further delay, and that HMR Phase II receives all necessary approvals at the earliest from the Centre.

In an open letter to the BJP leader and Secunderabad MP, the Chief Minister urged him to take up the matter immediately with IRFC and Railway Minister Ashwini Vaishnaw, and ensure the release of the sanctioned funds. He noted that the central public sector enterprise had already completed due diligence and approved the financing.

Mr. Revanth Reddy said the government has provided sovereign-level repayment safeguards, including a Direct Debit Mechanism through the RBI. It has also deposited ₹6,461.47 crore as equity into an escrow account and paid ₹84.32 crore to IRFC as an upfront fee.

Although the drawdown date was June 15, the disbursement has not taken place despite the government complying with all conditions stipulated by the lender, he said.

The Chief Minister said that the government has addressed concerns relating to the operational integration of the ‘privately’ owned HMR Phase I (69.2 km) and the proposed Phase II (122.9 km), estimated to cost ₹38,595 crore. The State accepted these concerns and took the step of taking over Phase I to enable the metro system to operate under a unified public-sector framework.

He said the takeover involves acquisition of equity worth ₹1,461.47 crore and refinancing existing project debt of ₹13,538.53 crore, totalling ₹15,000 crore. The process was conducted transparently through an officers’ committee, including UP Metro Rail Corporation MD Sushil Kumar, with every step communicated to the Centre. While seeking approval for Phase II as a 50:50 joint venture with the Centre, the State is also prepared to proceed using its own resources and institutional financing to expedite implementation if there is going to be any further delay, said the CM.

Mr. Revanth Reddy also offered to meet Mr. Kishan Reddy personally at any time and place to provide further clarifications on the issue.