Politics · India Bureau
Hyderabad Metro expansion stalled as funding hunt continues
The Hyderabad Metropolitan Development Authority's plans to take over Phase-I operations and expand Phase-II face delays as efforts to secure ₹13,500 crore in financing remain unsuccessful. Despite approaching multiple lenders, no financial institution has agreed to provide the required loan at the government's preferred interest rates.
LSN India ·
Plans to operationalize Hyderabad Metro Rail's Phase-I and accelerate Phase-II expansion have hit a significant roadblock over funding constraints, officials said. SBI Caps, tasked with identifying a lender for a ₹13,500-crore acquisition and development package, has struggled to finalize arrangements despite engaging several financial institutions.
Government officials privy to the matter revealed that prospective lenders have been reluctant to commit to the project at the interest rates the authorities are seeking. The stalled negotiations have created uncertainty around the timeline for both the Phase-I takeover and the planned extension of metro services across the city.
The funding gap underscores broader challenges in securing infrastructure financing for urban transport projects in India, where government agencies often seek concessional lending terms that may not align with market conditions. Industry observers note that such delays can push project timelines and increase overall costs.
Hyderabad Metro's expansion forms part of the broader push to enhance public transportation in the fast-growing metropolitan area. Resolution of the financing impasse is now critical to maintaining momentum on the infrastructure initiative.