Hyderabad Metro Rail Phase 2: Centre Nods for 164 Km Expansion
The Central Government has given in-principle approval for the long-awaited Phase-II expansion of the Hyderabad Metro Rail project, bringing a major boost to the city’s public transport network. The proposed expansion will cover nearly 162 kilometers across different parts of Hyderabad.
The Centre has also agreed to support the project through a 50:50 funding partnership with the Telangana government, signaling strong cooperation between both governments for the city’s future infrastructure growth.
The development was discussed during a high-level meeting held in New Delhi between Union Minister for Housing and Urban Affairs Manohar Lal Khattar and Union Minister G. Kishan Reddy. The meeting focused on Hyderabad’s urban development plans, sanitation projects and transport infrastructure.
Centre Positive About Metro Expansion
Speaking after the meeting, Union Minister Khattar said the Centre has no major objections to the Hyderabad Metro Phase-II project. He stated that once the Telangana government submits the Detailed Project Report (DPR) and technical proposals, the Union Government will examine them and move forward with the required approvals.
The Phase-II project is expected to significantly improve connectivity in Hyderabad by extending metro services to several developing areas and reducing traffic congestion across the city.
Major Push for Musi River Cleanup
Apart from the metro expansion, the Centre also approved major funding for the rejuvenation of the Musi River under the AMRUT 2.0 scheme.
The government has sanctioned:
- 39 Sewage Treatment Plants (STPs)
- Estimated project cost of ₹3,975 crore
Treatment capacity of 972 million litres per day
The project aims to stop untreated sewage from entering the Musi River and improve sanitation infrastructure in Hyderabad.
How the Metro Approval Moved Forward
The Centre’s approval comes after major changes in the ownership structure of Hyderabad Metro Rail.
Earlier, the Phase-I metro network was operated by Larsen & Toubro under a Public-Private Partnership (PPP) model. However, financial challenges and losses reportedly made the company unwilling to participate in the Phase-II expansion.
This created delays because the Centre wanted clarity on how the new phase would integrate with the existing metro system.
To resolve the issue, the Telangana government decided to take complete control of the metro operations. In April 2026, the state-owned Hyderabad Metro Rail Limited (HMRL) officially acquired the entire metro stake from L&T in a deal reportedly valued at around ₹15,000 crore, including debt obligations.
State Takeover Clears Path for Funding
After the state government took full ownership of the existing metro network, the Centre’s concerns regarding operational coordination were resolved. This allowed both governments to move towards a joint funding structure for the next phase.
The latest decision is being seen as a major milestone for Hyderabad’s infrastructure expansion and marks the beginning of a new phase in the city’s metro development plans.
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