The Telangana government led by Revanth Reddy has already submitted a Detailed Project Report (DPR) to the Central government for the second phase of the Hyderabad Metro Rail project. The project covers seven corridors spanning 122.9 kilometres, with an estimated cost of ₹38,595 crore. Chief Minister Revanth Reddy met Union ministers several times and requested approvals for the project. Not only that, he also sought approval for loan proposals to facilitate the takeover of the Metro Phase-I project from L&T. However, the proposal for a ₹13,527 crore loan to be sanctioned by the Indian Railway Finance Corporation (IRFC) was halted at the last minute. At the time, Chief Minister Revanth Reddy alleged that it was a conspiracy orchestrated by Union Minister Kishan Reddy. Now, however, he has agreed to all the conditions laid down by the Centre and has completely set aside the conspiracy angle.
This has triggered widespread discussion in political and bureaucratic circles about what actually transpired behind the scenes. On the other hand, after everything appeared to be ready, it has now been decided to once again assess the valuation of Metro Phase-I, determine the loan required for its acquisition, and also re-examine the cost of the Metro Phase-II expansion project and the amount of funding needed for it. This outcome emerged after two days of consecutive meetings with Union ministers in Delhi. However, the state government had already prepared comprehensive reports on both these issues and had also submitted them to the Centre.
Despite this, the decision to conduct a fresh study through SBI Caps has sparked speculation that the Centre may not have confidence in the estimates provided by the Revanth Reddy government. At the same time, the estimate that SBI Caps arrives at for the second phase has now become a crucial issue. Attention is focused on whether the revised project cost will be higher or lower than the estimate presented in the DPR prepared by the Revanth Reddy government. If the estimated cost comes down significantly, the government could face severe criticism. On the other hand, if the estimate rises further, both the Congress and the BJP could face allegations that they are working together on the issue, a minister reportedly remarked.