Telangana CM urges minister to release stalled IRFC metro loan

Telangana Chief Minister A. Revanth Reddy has publicly appealed to the Union Minister for Coal and Mines, G. Kishan Reddy, to expedite the disbursement of a sanctioned 13,538.53 crore loan from the Indian Railway Finance Corporation (IRFC) for the state's takeover of Hyderabad Metro Rail Phase I. The Chief Minister, in an open letter dated June 16, stated that the first tranche of financing was scheduled for release on June 15, but the funds have not been transferred despite the state fulfilling all conditions, including depositing 1,461.47 crore as equity and paying an 84.32 crore upfront fee.

The dispute centers on the refinancing package for the state's acquisition of the 69.2 km Phase I network from the private operator LT Metro Rail Hyderabad. The total transaction value is 15,000 crore, which includes acquiring equity and refinancing existing project debt. The state government initiated the takeover to resolve operational integration concerns between the privately built Phase I and the proposed government-run Phase II, a 122.9 km expansion estimated to cost 38,595 crore.

In response, Union Minister G. Kishan Reddy rejected allegations of political interference, attributing...