The government led by Revanth Reddy in Hyderabad has commenced the ambitious expansion of the Hyderabad Metro Rail network, which is slated to cover six new routes spanning a total distance of 70 kilometers. To facilitate this extensive project, the state government is seeking funding assistance, leading to discussions with the Japan International Cooperation Agency (JICA).
Initial projections indicate that the expansion of the metro rail system will require an investment of approximately ₹17,500 crores. Traditionally, such infrastructural endeavors are financed through a combination of sources, with the state government contributing 35%, the central government 15%, and the remaining 50% secured through loans. However, for this expansion, authorities are contemplating a novel financing model. Under this approach, 5% of the loan portion will be sourced through government and private partnership (PPP) ventures, while the remaining funds will be acquired through long-term loans.
In pursuit of this funding strategy, Chief Minister Revanth Reddy, Deputy CM Mallu Bhatti Vikramarka, and other key officials have engaged in discussions with representatives from JICA India. Notably, JICA has previously sanctioned loans amounting to ₹1.07 lakh crores for metro rail projects in various Indian cities, including Chennai, Mumbai, Kolkata, Delhi, Bangalore, Patna, and Ahmedabad. Officials have indicated that the interest rates associated with JICA loans typically range between 2% to 3%, providing an attractive financing option for the Hyderabad Metro Rail expansion project.
