Telangana Takes Over Hyderabad Metro Phase I as Funding Dispute Stalls Phase II

On June 20, 2026, the Telangana government officially took over the ownership of Hyderabad Metro Phase-I in Hyderabad. However, the expansion of the transit system under Phase-II remains stalled due to delayed refinancing funds, triggering a major political dispute between the state administration and the Central Government of India.

Despite the Telangana government committing Rs. 15,000 crore toward the project, the crucial refinancing funds required to advance Phase-II have not been released. This delay has sparked an intense war of words between state and central leaders over the financing of the urban infrastructure project.

The funding row escalated into a direct political clash between Chief Minister Revanth and the Union Minister. Union Minister Kishan Reddy rejected the allegations made by Chief Minister Revanth, stating that there was no political motivation behind the delay in the metro loan refinancing.

Meanwhile, the Congress party has shifted into attack mode as the opposition mounts questions over governance failures. The ongoing political battle has left the future of the Hyderabad Metro Phase-II hanging in the balance, even as the state government assumes full control over the existing Phase-I network.

The takeover of Phase-I marks a significant shift in the ownership of Hyderabad's primary mass transit system. However, local commuters and officials remain concerned that the political impasse over the Rs. 15,000 crore Phase-II project will continue to delay much-needed public transport expansion across the city.