Hyderabad Metro Expansion Gains Momentum Amid Funding Challenges
Despite Telangana’s disappointment over the Union Budget 2024-25 offering no fresh project approvals, hope remains for the long-anticipated Hyderabad Metro Phase 2. Estimated at ₹24,269 crore and spanning 76.4 km across five corridors, the metro expansion is currently under evaluation by the Union Ministry of Housing & Urban Affairs. Senior government officials have expressed confidence that the project could secure clearance in the coming months, given its alignment with national urban transport policies. The approval process is progressing steadily, with multiple ministries, including railways and surface transport, assessing the technical details.
A key factor in securing the Centre’s nod lies in the project’s financial viability. The state government is seeking a sovereign guarantee from the Centre to facilitate funding from international agencies like JICA, ADB, and NDB. Telangana’s funding model proposes a 30% share (₹7,313 crore) from the state, 18% (₹4,230 crore) from the Centre, 48% (₹11,693 crore) from loans, and 4% (₹1,033 crore) through the PPP model. With the revised national budget estimates for Metro and MRTS projects standing at ₹31,239 crore for 2024-25—significantly higher than the previous year’s ₹24,691 crore—the Hyderabad Metro expansion has a strong case for approval. In comparison, Chennai Metro Phase 2 secured approval last October, setting a precedent for similar projects.
From a sustainability perspective, the metro expansion is vital for Hyderabad’s urban mobility and environmental goals. With rising vehicular pollution and congestion, extending metro connectivity to key areas—including the 36.8-km Nagole-Shamshabad Airport Corridor and the 13.4-km Miyapur-Patancheru stretch—will significantly reduce carbon emissions. Studies indicate that metro networks contribute to a 30-40% reduction in private vehicle usage, making them a crucial component of sustainable urbanisation. By integrating renewable energy sources and energy-efficient rolling stock, Hyderabad Metro can align with global best practices in green transportation.
The metro’s expansion is also a pressing civic issue, as Hyderabad’s rapid urbanisation demands improved public transport. Congested roads and inconsistent last-mile connectivity continue to pose challenges, particularly in densely populated zones like the Old City and the IT corridor. If approved, the new corridors—including Raidurg-Kokapet Neopolis and MGBS-Chandrayangutta—could bridge crucial connectivity gaps. Public transport advocates argue that proactive Centre-State collaboration is essential to fast-track infrastructure projects that directly impact economic growth and urban development. As the proposal awaits approval, the Hyderabad Metro’s expansion is not just a matter of mobility but a significant urban transformation initiative.
