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Home | Telangana | Centres Support For Hyderabad Metro Yet To Get On Track

Centre’s support for Hyderabad Metro yet to get on track

Hyderabad: After Delhi, Hyderabad Metro Rail is the second-largest Metro rail network in the country. However, the Hyderabad Metro Rail is yet to get the support it deserves from the Central government. For the last couple of years, the State government has been appealing to the Centre to release Rs 254 crore Viability Gap Funding […]

By Telangana Today
Updated On - 26 January 2022, 12:49 AM
Centre’s support for Hyderabad Metro yet to get on track
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Hyderabad: After Delhi, Hyderabad Metro Rail is the second-largest Metro rail network in the country. However, the Hyderabad Metro Rail is yet to get the support it deserves from the Central government. For the last couple of years, the State government has been appealing to the Centre to release Rs 254 crore Viability Gap Funding (VGF) dues but the latter is yet to consider the requests.

Officials in the State government are hoping that the Centre would consider State’s request and release VGF dues at least in this year’s budget. “Letters have been written and even MA&UD Minister KT Rama Rao had personally taken up the issue with the Centre. But there is hardly any response from the Centre, save for an assurance that it will be looked into,” a senior official from MA&UD Department told ‘Telangana Today’.


The Central government had assured to allocate Rs 1,458 crore as VGF for the first phase of the Hyderabad Metro Rail project. The project was completed covering 69.2-km on three routes. So far, the Centre had released Rs 1,204 crore towards VGF and the balance amount of Rs 254 crore has been due even as the first phase of the Hyderabad Metro project was completed. Hyderabad Metro operations were launched in stages. On November 29, 2017, Prime Minister Narendra Modi had flagged off the Metro services from Nagole to Miyapur via Ameerpet interchange station. And, the services on the last route between Jubilee Bus Station and Mahatma Gandhi Bus Station were flagged off by Chief Minister K Chandrashekhar Rao on February 8, 2020.

Since then, Hyderabad Metro has been a big hit with commuters. During pre-Covid, every day, nearly 4 lakh passengers travelled in Metro. However, due to Covid, there was a decline in patronage with many passengers preferring personal vehicles. After the resumption of services after lockdown, about 2 lakh to 2.5 lakh passengers are travelling in the Metro services a day.

Discrimination towards KPHB Neo and Warangal Neo

Buoyed with the success of Hyderabad Metro, the State government planned a Metro Neo project on the Kukatpally Housing Board – Kokapet and Narsingi corridor. The project would cover about 30-km and officials expect a ridership of 5 lakh passengers by 2030. More importantly, it will have connectivity with the proposed Airport Express at Narsingi and with the existing Metro network.

As per the preliminary estimates, the project would cost Rs 3,050 crore. MA&UD Minister KT Rama Rao requested the Centre to sanction 15 per cent of the project cost i.e Rs 450 crore. The Minister had already requested the Centre for allocation of funds for the Metro Neo network along the KPHB – Kokapet – Narsingi corridor. Hope, it would be considered in the new Budget, said an official from MA&UD Department.

Warangal Neo

Apart from Kukatpally Housing Board Neo, the State government also planned a Metro Neo project for Warangal with an idea to promote the public transport system in the Tier II city. The State government had already submitted a Detailed Project Report to the Centre in this regard. MA&UD Minister KT Rama also requested the Centre to sanction Rs 184 crore, which works out to 20 per cent of the Warangal Metro-Neo project. “The Government of Telangana is exploring the possibility of manufacturing Metro-Neo coaches in Telangana in conformity to Central government’s policy of & Make in India and Atma Nirbhar Bharat Abhiyan,” Rama Rao had said in his letter to the union Finance Minister Nirmala Sitaraman early this week.

Karnataka Metro gets funds

Despite Telangana’s repeated requests for support and release of funds for Metro projects, the Central government continues to show its discrimination towards Telangana. On the contrary, the neighbouring Karnataka Metro Phase 2 (A) and (B) projects were granted funds in the last Budget. Reportedly, the 58.19-km stretch from Central Silk Board junction to KR Puram and KR Puram to Kempegowda International Airport is estimated to cost Rs 14,788 crore, of which the union Government’s direct funding is about 15 per cent. “Since there were elections in Karnataka, Centre granted funds to Bengaluru Metro and sidelined funds to Telangana Metro projects,” a senior official from MA&UD Department said.


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