Hyderabad Metro Phase II, Regional Ring Road, Semiconductor Mission, and Defence Projects
New Delhi, February 26, 2025 – Telangana Chief Minister A. Revanth Reddy met with Prime Minister Narendra Modi in New Delhi to discuss critical infrastructure and industrial development projects aimed at transforming Telangana into a major economic hub. The discussions focused on the Hyderabad Metro Rail Phase II, Regional Ring Road (RRR), India Semiconductor Mission, and defence ecosystem enhancements, with Reddy urging expedited approvals and central government support to drive these initiatives forward.
Hyderabad Metro Rail Phase II: A Push for Urban Connectivity
Chief Minister Reddy highlighted the urgent need to expand Hyderabad’s metro network, noting that the previous government neglected metro expansion for a decade. Phase I of the Hyderabad Metro, spanning 69 km across three corridors (Miyapur–LB Nagar, JBS–MGBS, and Nagole–Raidurg) at a cost of ₹22,000 crore, has been operational since 2017. The proposed Phase II project includes five new corridors covering 76.4 km at an estimated cost of ₹24,269 crore. This expansion, to be executed as a joint venture between the Government of India (18% share, ₹4,230 crore) and the Government of Telangana (30% share, ₹7,313 crore), with the remaining 48% (₹11,693 crore) funded through debt, aims to enhance urban mobility and reduce traffic congestion in Hyderabad.
The proposed corridors include extensions from Miyapur to Patancheruvu (14 km), Nagole to Shamshabad Airport via LB Nagar and Chandrayangutta (29 km), Raidurg to Kokapet (8 km), Nagole to RGIA (36.6 km), and LB Nagar to Hayatnagar (8 km). Reddy emphasized that the project, submitted to the Ministry of Housing and Urban Affairs on November 4, 2025, has addressed all clarifications sought by the ministry. He urged the Prime Minister to expedite Cabinet approval, citing recent approvals for Chennai Metro Phase II (₹63,246 crore, October 2024), Bangalore Metro Phase II (₹14,788 crore, April 2021), and Bangalore Metro Phase III (₹15,611 crore, August 2024) as precedents. The project is expected to be completed within four years, significantly improving connectivity to key areas like the Rajiv Gandhi International Airport and reducing reliance on private vehicles.
Regional Ring Road and Rail: Transforming Telangana’s Connectivity
Reddy also sought approval for the Regional Ring Road (RRR), a 340-km, four-lane greenfield expressway under the Bharatmala Pariyojana Phase-I, designed to encircle Hyderabad. The northern part (164 km, ₹9,500 crore), connecting Sangareddy, Narsapur, Toopran, Gajwel, Yadadri, Pragnapur, Bhongir, and Choutuppal, has seen 90% land acquisition completed, with Telangana sharing 50% of the cost. Tenders have been invited by the National Highways Authority of India (NHAI), and Reddy requested financial and Cabinet approval to commence construction. The southern part (182 km, ₹6,480 crore), connecting Choutuppal, Ibrahimpatnam, Kandukur, Amangal, Chevella, Shankarpally, and Sangareddy, awaits sanction. Reddy stressed that simultaneous development of both segments is critical to avoid cost escalation due to land appreciation and to ensure efficient use of the RRR, as Hyderabad’s Outer Ring Road is projected to reach saturation within five years due to the city’s rapid growth in IT, pharmaceuticals, and logistics.
Additionally, Reddy proposed a Regional Ring Rail, a 370-km railway line parallel to the RRR, to enhance intra-state and inter-state connectivity. This ambitious project aims to transform Telangana’s socio-economic landscape by linking underdeveloped regions and decongesting major railway stations like Secunderabad, Nampally, Kacheguda, and Lingampally. He also requested approval for a greenfield highway and railway line connecting a proposed dry port near the RRR to Bandar Port in Andhra Pradesh, facilitating exports and imports for landlocked Telangana, which contributes 35% of India’s pharmaceutical production. These initiatives are expected to position Telangana as a logistics hub, reduce freight costs, and create jobs.
India Semiconductor Mission: Positioning Telangana as a Global Hub
Reddy underscored Telangana’s potential to become a premier hub for semiconductor and electronics manufacturing, aligning with India’s Semiconductor Mission (ISM). Hyderabad’s ecosystem, bolstered by global R&D centers (AMD, Qualcomm, NVIDIA) and manufacturers (Foxconn, Kaynes), offers seismic safety, industrial land, skilled manpower, and robust infrastructure. The Chief Minister requested the Prime Minister’s intervention to secure ISM project approval for Telangana, which would attract investments, create high-value jobs, and support India’s goal of achieving $500 billion in electronics production by 2030. This move is seen as critical to strengthening investor confidence and enhancing India’s role in the global semiconductor supply chain.
Defence Ecosystem: Elevating Hyderabad’s Role
Hyderabad, a leading hub for aerospace and defence under the Make in India initiative, hosts DRDO labs, over a dozen defence PSUs, and more than 1,000 MSMEs supplying components to global and national OEMs like Lockheed Martin, Boeing, GE, Safran, and Honeywell. Reddy sought central government support to fast-track approvals for defence joint ventures (JVs) and offset contracts, as global OEMs require assured orders to invest. He proposed notifying the Hyderabad-Bangalore corridor as an official defence corridor, arguing that it deserves parity with regions like Uttar Pradesh, Tamil Nadu, Gujarat, and Andhra Pradesh. Additionally, he requested that Hyderabad host the next DefExpo, highlighting its status as a defence manufacturing hub. To support defence MSMEs, Reddy urged the introduction of Production-Linked Incentive (PLI) schemes and other incentives to address high investment costs and long gestation periods. He also sought the transfer of 222.7 acres of defence land for the Gandhi Sarovar project, which aims to enhance Hyderabad’s water security and environmental sustainability.
Musi River Rejuvenation and Other Requests
Reddy also requested ₹20,000 crore in central funding for the Musi River Rejuvenation Project, emphasizing its cultural and spiritual significance to Telangana. The project includes developing Bapu Ghat at the confluence of the Esa and Musi rivers, constructing 27 sewage treatment plants, building retaining walls and embankments, and linking the Musi and Godavari rivers to ensure sustainable water flow. Additionally, he sought 29 additional IPS posts to address rising cybercrime, drug trafficking, and urbanization challenges in Telangana, which currently has 76 IPS posts post-bifurcation.
Context and Challenges
The meeting comes amid Telangana’s efforts to recover from perceived neglect by the previous BRS government, which Reddy claimed stalled key projects like the metro expansion and RRR. Posts on X reflect mixed sentiments, with some highlighting delays in Phase II due to central government queries on ridership projections and technical issues, while others praise Reddy’s proactive approach to securing approvals. The state’s commitment to funding 50% of land acquisition costs for the RRR and its readiness to collaborate on metro and defence projects underscore its ambition to drive transformative growth. However, opposition criticism and public controversies, such as the recent Miss World pageant incident in Hyderabad, have added pressure on the Congress-led government to deliver on its promises.
Looking Ahead
Reddy’s discussions with Modi signal Telangana’s aggressive push for infrastructure and industrial development. The approval of these projects could significantly enhance Hyderabad’s status as a global IT, pharmaceutical, and defence hub while improving urban mobility and regional connectivity. The state government awaits swift action from the central government to move these initiatives forward, with the Hyderabad Metro Phase II and RRR expected to be game-changers for Telangana’s economy and quality of life.
