Hyderabad Metro Phase-II stuck in appraisal, airport link costs Rs 19,579 crore: RTI

Hyderabad: A Right to Information (RTI) reply has revealed that the second phase of the Hyderabad Metro Rail project is still awaiting approval by the Union Ministry of Housing and Urban Affairs (MoHUA). The revelation also spotlights the staggering Rs 19,579 crore price tag for the planned extension to Rajiv Gandhi International Airport(RGIA) Shamshabad, also known as Phase 2B.

The RTI response, dated September 16, 2025, to Hyderabad-based RTI activist Kareem Ansari. It indicates the project remains stalled due to procedural delays. Kareem Ansari said “This lack of transparency and constant back-and-forth reflects poor planning and weak accountability in handling a vital urban mobility project. Metro expansion is not just about infrastructure, it is about easing public transport burdens, reducing pollution, and shaping the future of Hyderabad city.”

A Project in Flux

According to the RTI reply, the latest 162.5 km Phase 2 blueprint marks a dramatic leap from earlier plans. Remarkably, the Shamshabad airport corridor (Phase 2B) now exceeds the entire Rs 14,558 crore budget once allocated for the 62-km Phase 2 proposal submitted in October 2022, which the new administration later scrapped.

The Ministry in the RTI response confirmed that Phase 2A, a 76.4 km network expansion submitted on November 4, 2024, is 'under appraisal' and has not yet been placed before the Public Investment Board. Phase 2B, an 86.1 km regional expansion submitted on June 26, 2025, is 'under examination.'

“The RTI reply from the Ministry of Housing and Urban Affairs clearly shows how the Hyderabad Metro Phase-2 project has been caught in uncertainty due to repeated delays, withdrawal of earlier proposals, and pending appraisals. The Government of Telangana had earlier submitted a proposal for 62 km with an estimated cost of Rs 14,558 crore, but the new government has withdrawn it. The revised Phase-2A and 2B proposals are still under examination, and crucial correspondence between the Centre and the State is being withheld, citing Cabinet confidentiality,” Kareem Ansari told HyderbadMail.

Current Status: Under Examination

The RTI reply outlines the current status. Firstly, Phase 2A, submitted by the Telangana government on November 4, 2024, is still under the Ministry’s microscope and has yet to reach the Public Investment Board for clearance. Phase 2A, spanning 76.4 km, aims to expand the city's network and connect emerging hubs like Kokapet Neopolis. The five proposed corridors are: Corridor IV (Nagole to RGIA, 36.8 km), Corridor V (Raidurg to Kokapet Neopolis, 11.6 km), Corridor VI (MGBS to Chandrayangutta, 7.5 km), Corridor VII (Miyapur to Patancheru, 13.4 km), and Corridor VIII (LB Nagar to Hayatnagar, 7.1 km).

Secondly, Phase 2B, the RGIA airport link proposal, was put forward on June 26, 2025, and remains under scrutiny. The Ministry has not requested clarifications or revisions from the state government. This 86.1 km stretch is set to push the metro’s reach to Hyderabad’s outskirts. The proposed corridors are Corridor IX (RGIA to Bharat Future City, 39.6 km), Corridor X (JBS to Medchal, 24.5 km), and Corridor XI (JBS to Shamirpet, 22 km).

The response also clarified that the Ministry has not conducted or received any specific feasibility studies or internal assessments for the phased extensions. It stated, 'No information is available' on the matter.

Clash of Models and Path Forward

A fundamental conflict between the Public-Private Partnership (PPP) model of Phase I and the government led to the delay. According to the statement released by the Chief Minister's Office (CMO), “The Government of Telangana has submitted proposals for the sanction of 8 lines as part of Phase 2A & 2B expansion, totalling about 163 km of additional metro network. The Government of India has held multiple meetings to review the proposals.”

Furthermore, the project encountered a deadlock after the original operator, L&T, which had exited the business of owning transport assets, declined to participate in Phase II. “The Government of India want a clear agreement with L&T to ensure Phase 1 and Phase 2 work together before moving forward with the proposal. The Government of India has also requested L&T Metro to participate in the Phase 2 project as JV of the Government of India (GoI) and the Government of Telangana (GoTG). In response, L&T has conveyed regret that they will neither be able to participate in Phase 2A and Phase 2B as an equity partner nor sign the definitive agreement, and has expressed their willingness to offer their equity stake in LTMRHL to the state or central government,” read the statement.

To resolve the impasse, Chief Minister A. Revanth Reddy met with L&T Group Chairman S.N. Subrahmanyan on September 25. The Chief Minister's Office described the outcome as a landmark decision.

The statement further revealed that the state government will shoulder the full Rs 13,000 crore debt of LTMRHL. L&T will receive a one-time settlement of around Rs 2,000 crore for its equity, significantly less than the original Rs 5,900 crore demand. The deal also covers a pending Rs 2,100 crore interest-free loan from the state.

Lack of Transparency

Meanwhile, the Ministry has refused to share copies of official communications, letters, and file notes exchanged with the Telangana government regarding the project. Citing section 8(1)(i) of the RTI Act, the Central Public Information Officer (CPIO) stated that these documents are 'confidential in nature' as they will eventually become part of a Cabinet paper and cannot be divulged at this stage. The documents will only be made public after the project receives final approval from the Government of India.

Ansari stressed that Hyderabad’s citizens deserve transparency about project delays, approval schedules, and funding. He called on both state and central governments to prioritize the city’s metro needs above politics.