Hyderabad Metro Phase 2 Faces Rs 4,335 Crore Cost Escalation Due to Approval Delays

The second phase of the Hyderabad Metro expansion project has experienced a substantial cost increase, with estimates climbing from Rs 34,260 crore to Rs 38,595 crore—a jump of Rs 4,335 crore. This escalation stems largely from delays in securing approval from the Centre, according to documentation filed by the Telangana government.

The state administration first forwarded the Detailed Project Reports for phase 2 to New Delhi in November 2024. Since that submission, Chief Minister A. Revanth Reddy has held multiple meetings with Union ministers and personally appealed to Prime Minister Narendra Modi to accelerate the approval timeline. Despite these efforts, the proposal remains in limbo.

Specialists in engineering and project management have flagged concerns that the extended delay will impose additional strain on the state's finances. Rising construction expenses over time mean that every month of postponement adds to the overall project burden.

Seven Corridors Planned for Expansion

The Metro phase 2 initiative encompasses seven new corridors with a combined length of 122.6 kilometres. The proposed routes are:

• Nagole to Shamshabad Airport (36.8 km)
• Raidurg to Kokapet Neopolis (11.6 km)
• MGBS to Chandrayangutta (7.5 km)
• Miyapur to Patancheru (13.4 km)
• LB Nagar to Hayathnagar (7.1 km)
• Jubilee Bus Station to Medchal (24.5 km)
• Jubilee Bus Station to Shamirpet (22 km)

The original cost estimate of Rs 34,260 crore was prepared in 2024. By June 2026, this figure had been revised upward to Rs 38,595 crore.

Consultancy Agency Appointed

The Centre has engaged SBI Caps to evaluate both the loan takeover for the first phase and the expansion plans for phase 2. While the appointment has been announced, formal government orders have not yet been issued, even after a 10-day period. The Telangana government has already designated its representative to participate in this assessment.

Officials indicate that the consultancy work could be completed within half a year once the necessary orders are issued by the Centre. SBI Caps will conduct a comprehensive review encompassing asset evaluation, expansion feasibility, document scrutiny, cost analysis, and financing assessment before submitting its findings. The exercise is expected to conclude by December.

Chief Minister Revanth Reddy is anticipated to meet with Union ministers again on Tuesday to press forward on the stalled Metro proposals.