Sun Nov 16 18:19:40 UTC 2025: Okay, here’s a summary and rewritten news article based on the text you provided:
Summary:
The second phase of the Hyderabad Metro Rail project is facing significant delays and complications. The Congress government’s proposed takeover of Phase-I from L&T is bogged down in legal complexities related to the Concessionaire Agreement and the need for Central government approval. Simultaneously, the revised Detailed Project Report (DPR) for Phase-II has yet to reach the Union Ministry of Housing and Urban Affairs, further delaying progress. The State government is considering alternative funding options like commercial banks to proceed with Phase-II despite the lack of central clearances, raising concerns about the long-term viability and safety of the project. Experts emphasize the importance of central approvals and the Commissioner of Railway Safety certification before any metro operations can commence.
News Article:
Hyderabad Metro Expansion Stalled by Legal Battles, Funding Hurdles
Hyderabad, India – November 16, 2025 – Plans to expand the Hyderabad Metro Rail system are facing significant roadblocks, with the second phase of the ambitious project mired in legal disputes, bureaucratic delays, and funding uncertainties.
Just over a month after the Congress government announced its intention to take over the existing Phase-I (69.2 km) from L&T for ₹15,000 crore, progress has stalled. A committee established to oversee the takeover has yet to meet, signaling the complexity of disentangling the Concessionaire Agreement (CA) between L&T and the state. The project also falls under the Central Metro Act, and thus will require approval from the central government, which contributed ₹1,200 crore through Viability Gap Funding (VGF) to the first phase.
Adding to the complications, the revised Detailed Project Report (DPR) for Phase-II, encompassing 76.4 km across five corridors and an estimated cost of ₹26,264 crore, has not even been submitted to the Union Ministry of Housing and Urban Affairs (MoHUA). This delay jeopardizes the seamless integration of Phase-I with the planned expansion.
Despite these hurdles, the State government is reportedly considering moving forward with Phase-II, or at least parts of it, without mandatory central clearances. Faced with a potential lack of sovereign guarantees from the Centre, which are crucial for securing low-interest loans from global lenders, the state is exploring borrowing from commercial banks. This move raises concerns about the financial sustainability of the project, particularly as L&T’s exit from Phase-I was driven partly by the burden of interest payments on its existing ₹11,000-crore loan.
Experts familiar with the project emphasize the necessity of central approvals and certification from the Commissioner of Railway Safety before any new metro lines can become operational. “Clearances from Central ministries, including MoHUA and Railways, are critical because of interconnected designs, technology and safety issues,” said a source close to Phase-I. Without these essential safeguards, the future of the Hyderabad Metro expansion remains uncertain.
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