Revanth Reddy presses Centre to expedite SBI CAPS appointment for Metro takeover

Chief Minister Revanth Reddy has urged the Centre to expedite the appointment of SBI Capital Markets Limited for valuation of Hyderabad Metro Phase I, citing operational uncertainty and delays in Phase II approvals.

Hyderabad: Concerned over delays in the takeover of Hyderabad Metro Phase I and the resulting operational uncertainty, Chief Minister A Revanth Reddy has written to Union Ministers Manohar Lal Khattar and G Kishan Reddy, urging them to expedite the appointment of SBI Capital Markets Limited (SBI CAPS) to conduct the valuation and financial assessment of the project.

The Chief Minister had met the two Union Ministers separately in New Delhi on June 24 to discuss the State government’s proposal to take over Hyderabad Metro Phase I and to seek approval for Metro Phase II.

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During the meeting, it was agreed that SBI CAPS would be entrusted with carrying out the valuation and financial examination of Metro Phase I to facilitate its takeover by the Telangana government.

SBI CAPS was also expected to examine options for refinancing the existing high-cost debt of Phase I. Since Phase II would require substantial borrowing, the agency was also tasked with evaluating its financing structure, including suitable long-term debt options and funding arrangements.

However, in a letter addressed to the Union Minister for Housing and Urban Affairs on Saturday, Revanth Reddy said that despite the passage of considerable time since the meeting, SBI CAPS had not yet been formally assigned the work.

“The Terms of Reference have not been finalised and communicated to the Telangana government,” the Chief Minister said.

He pointed out that the delay in the takeover process was creating operational uncertainty and day-to-day challenges for the Metro project. It was also affecting approval of the Phase II Detailed Project Reports (DPRs) and delaying efforts to secure suitable funding arrangements.

“This is postponing project implementation and is likely to increase the Phase II cost due to avoidable time overruns and cost escalation,” Revanth Reddy stated.

The Chief Minister urged the Union government to entrust the assignment to SBI CAPS at the earliest so that the decisions taken during the June 24 meeting could be implemented expeditiously. He said an early decision would help conclude the Phase I takeover process and facilitate the timely expansion of Metro Phase II. The Chief Minister made a similar appeal to Union Minister G Kishan Reddy.