Hyderabad: The Telangana government on Monday, June 17 sanctioned Rs 19, 579 crore for Hyderabad Metro rail phase 2 B.
The allocations has been made with an aim to improve urban mobility in Hyderabad. This phase is being taken up as a joint venture project between the state government and the Centre, supported by international funding agencies.
For Hyderabad Metro Rail phase 2 , the Telangana government will spend Rs 5,874 crore (30 percent) and the Centre will provide Rs 3,524 crore (18 percent). The Japan International Corporation Agency (JICA), Asian Development bank and the New Development Bank will make up for 48 percent of the investment in Hyderabad Metro Rail phase 2.
The project is being developed under Public-Private Partnership which will spend Rs 783 crore (4 percent). The Telangana government’s share includes land acquisition and infrastructure support, while the Centre’s participation adds strength to the project’s execution.
The rest will be raised through loans from multilateral agencies like the Japan International Cooperation Agency (JICA), Asian Development Bank (ADB), and New Development Bank (NDB).
In May, 2025 Telangana chief minister A Revanth Reddy urged Prime Minister Narendra Modi to approve the Hyderabad Metro Rail phase 2 project worth Rs 24,269 crore. Reddy also sought approval for other key projects including Regional Ring Road, and semiconductor and defence initiatives, citing their importance for Telangana’s economic growth and national development on the sidelines of the NITI Aayog meeting in Delhi on Saturday, May 24.
The Telangana CM stressed the urgent need to to expand Hyderabad’s metro network, pointing out that no expansion had been taken up in the last decade. While Phase 1, covering 69 km, was implemented for Rs 22,000 crore, the proposed Phase 2 includes five new corridors spanning 76.4 km, at an estimated cost of Rs. 24,269 crore.
The Hyderabad Metro Rail Phase 2 is a joint venture between the Telangana government and the Centre. 18 percent (Rs 4320 crore) funding has to come from the Centre, 30 percent from the state (Rs 7,313 crore), and the remaining 48 percent (Rs 11,693 crore) raised through debt.
The proposal was submitted to the ministry of housing and urban affairs (MoHUA) on November 4, 2025. All clarifications sought by the ministry have been addressed, and the chief minister requested immediate cabinet approval to move the project forward.
He also cited the approvals for metro expansions in Chennai and Bengaluru, arguing that Hyderabad deserves similar support.
