CM Revanth Reddy Accuses Union Minister of Blocking Rs 13500 Crore Hyderabad Metro Loan

On Tuesday, 16 June 2026, a political dispute escalated in Hyderabad as Telangana Chief Minister A Revanth Reddy wrote an open letter accusing Union Minister G Kishan Reddy of blocking a Rs 13,500-crore loan from the Indian Railway Finance Corporation (IRFC) for the Hyderabad Metro. The ongoing disagreement has intensified tensions between the state and central governments over the financing of the city's transit system.

The dispute centers on a Rs 13,500-crore loan intended to refinance the Hyderabad Metro's existing debt. The refinancing is part of the Telangana government's plan to take over the metro system from L&T Metro Rail Hyderabad. Chief Minister Revanth Reddy maintained that the IRFC arrangement would provide a longer repayment tenure and lower interest rates, secured by sovereign-level safeguards and the Reserve Bank of India’s Direct Debit mechanism.

In response, Union Minister Kishan Reddy stated during a press conference in New Delhi that the delay in releasing the funds was due to technical reasons rather than political motives. Kishan Reddy argued that metro rail corporations should prioritize operations and maintenance expenses over debt servicing. He claimed the Chief Minister did not agree to this structure and instead wanted loan repayments prioritized using metro revenues.

According to the Chief Minister's letter, the state government had already fulfilled all conditions stipulated by the IRFC. This included paying an upfront fee of Rs 84.32 crore and depositing Rs 1,461.47 crore into an escrow account for the equity component of the transaction. Despite these steps, the scheduled drawdown on June 15 did not take place.

In his letter, Revanth Reddy urged the Union Minister to facilitate a meeting with the Union Minister for Railways to clear approvals for Hyderabad Metro Phase-II. The state has requested the Centre to sanction Phase-II as a 50:50 joint venture, though Revanth Reddy stated the state is prepared to execute the project using its own resources if the joint venture approval is delayed.