Hyderabad Metro Rail Phase-II: CM Revanth urges PM Modi to approve Rs 24269 Cr project

New Delhi: Telangana Chief Minister A. Revanth Reddy has urged Prime Minister Narendra Modi to expedite approvals for key infrastructure and industrial projects in the state.

The projects include the Hyderabad Metro Phase-II, Regional Ring Road, and semiconductor and defence initiatives, citing their importance for Telangana’s economic growth and national development.

Hyderabad Metro Rail Phase-II

Revanth Reddy highlighted the urgent need to expand Hyderabad's metro network, pointing out that no expansion had been taken up in the last decade. While Phase I, covering 69 km, was implemented for Rs. 22,000 crore, the proposed Phase II includes five new corridors spanning 76.4 km, at an estimated cost of Rs. 24,269 crore.

The project is designed as a joint venture between the Government of India and the Government of Telangana, with funding split as follows: 18 percent from the Centre (Rs 4,230 crore), 30 percent from the state (Rs 7,313 crore), and the remaining 48 percent (Rs. 11,693 crore) raised through debt.

The proposal was submitted to the Ministry of Housing and Urban Affairs (MoHUA) on November 4, 2025. All clarifications sought by the ministry have been addressed, and the Chief Minister requested immediate Cabinet approval to move the project forward.

He also cited the approvals already granted for metro expansions in Chennai and Bengaluru, arguing that Hyderabad deserves similar support.

Regional Ring Road (RRR) and Transport Infrastructure

The Chief Minister called for parallel sanction and execution of both the Northern and Southern corridors of the proposed 340-km Regional Ring Road encircling Hyderabad.

While work on the Northern section—covering Sangareddy to Choutuppal—is already underway with 90% land acquisition approvals submitted, the Southern section—extending from Choutuppal to Sangareddy via Amangal and Shadnagar—has not yet been cleared.

Revanth Reddy also made it clear that delaying the Southern section would lead to significant cost escalation and reduced utility of the overall project. He affirmed the state’s willingness to share 50% of the land acquisition costs for both corridors.

Additionally, the Chief Minister proposed a 370-km Regional Ring Railway line running parallel to the RRR to further strengthen regional connectivity and boost economic activity across the surrounding districts.

Industrial freight corridors

To support Telangana’s strong industrial and export sectors, particularly its 35 per cent contribution to India’s pharmaceutical production, Reddy also requested support for a greenfield highway and a dedicated railway line connecting the proposed Dry Port near Hyderabad with Bandar Port.

These projects aim to improve freight movement, reduce logistics costs, and enhance the competitiveness of Telangana’s manufacturing sector.

Semiconductor and Electronics Manufacturing

Emphasizing Telangana’s readiness to contribute to the India Semiconductor Mission (ISM), the Chief Minister sought central approval for a semiconductor fabrication project in the state. Hyderabad is already home to global R&D centres such as AMD, Qualcomm, and NVIDIA, along with major manufacturers like Foxconn and Kaynes.

Reddy highlighted the state’s strengths—industrial land availability, skilled workforce, infrastructure, and seismic safety—and stressed that approval of the ISM project would enhance investor confidence, generate high-value jobs, and support India’s target of $500 billion in electronics production by 2030.

Strengthening defence manufacturing

Revanth Reddy also sought the Prime Minister’s intervention to boost Telangana’s role in defence production. Hyderabad is India's largest aerospace and defence manufacturing hub, supported by DRDO laboratories, over a dozen defence PSUs, and more than 1,000 MSMEs supplying to national and global OEMs.

The Chief Minister requested fast-track approvals for defence joint ventures and offset projects, a dedicated approval mechanism to attract global OEMs, and inclusion of the Hyderabad-Bangalore corridor as an officially recognized Defence Corridor, ensuring parity with existing corridors in Uttar Pradesh, Tamil Nadu, Gujarat, and Andhra Pradesh.

He also proposed that Hyderabad be chosen as the host city for the next edition of DefExpo, India’s flagship defence exhibition.

Policy incentives for MSMEs

Revanth Reddy also urged the Centre to provide production-linked incentives (PLI) and tailored policy support for defence-focused MSMEs in Telangana. Given the high capital investment and long gestation periods involved, such support is critical to sustaining and scaling up their contribution to the national defence ecosystem.