Centre wants State-led loan for Hyderabad Metro Rail Phase I to enable Phase II joint venture (opens original article in a new tab)

The Centre and Telangana government are considering a direct loan arrangement for Hyderabad Metro Rail Phase-I to enable a joint venture for Phase-II, following the Jaipur Metro model.

• The Centre and MoHUA have asked the Telangana government to directly raise and service a loan for HMR Phase-I instead of using its SPV.
• The plan involves a 50:50 joint venture for HMR Phase-II with funding from loans, state government, and Centre, plus PPP for minor works.
• The Centre aims to take over HMR Phase-I from L&T at a lower interest rate with SBI Caps' help, potentially freeing it from debt obligations.