Hyderabad: Union Minister G Kishan Reddy has refuted allegations made by Telangana Chief Minister A Revanth Reddy that he was blocking the Indian Railway Finance Corporation (IRFC) loan for the Hyderabad metro rail project. Kishan Reddy clarified that the IRFC loan was stalled due to disagreements over certain conditions in the loan disbursement agreement, particularly regarding repayment terms. He stated that Chief Minister Revanth Reddy was unwilling to modify conditions as suggested by the central government.
Kishan Reddy Denies Baseless Allegations
Speaking at a press conference in Delhi, Kishan Reddy said, “CM Revanth Reddy has been making false accusations against me regarding the metro rail project for the past few days, which are completely baseless. Making such unfounded allegations is unbecoming of someone holding the post of Chief Minister. The BJP does not have a culture of blocking funds to states. Prime Minister Narendra Modi, the central government, or I do not require any certificate from the CM regarding our commitment to Telangana's development. We are answerable to the people of Telangana, not to Revanth Reddy or the Congress party.”
Disagreement Over Loan Repayment Terms
Kishan Reddy explained that Chief Minister Revanth Reddy had met Union Minister for Housing and Urban Affairs Manohar Lal Khattar multiple times regarding the issue. Khattar suggested changes in the agreement with IRFC, but the state government has not agreed to any modifications. The union minister said he spoke to Khattar on Tuesday morning, who clarified the matter. “The Centre wants to repay the IRFC loan of Rs 13,600 crore, taken for acquiring Phase I of the metro rail project from L&T, after meeting operational and maintenance (O&M) expenses from revenues like ticket sales and advertisements. However, the CM wants to repay the loan first and use the remaining amount for O&M. I advised the CM to prioritize the sustainability of Phase I over repayment; O&M costs must be met first,” Kishan Reddy said.
He noted that across the country, metro systems do not immediately use revenues to clear loans. Metro revenue must first cover O&M expenses. Even the Jaipur metro follows the Centre's suggestion to meet O&M costs before repayment.
Call for Dialogue
“This issue should be resolved through dialogue, not public criticism. Both the Telangana government and the Ministry of Urban Affairs must sit together to resolve the conditions and issue the No Objection Certificate for loan disbursement,” Kishan Reddy said. He also remarked that when the BRS was in power, the metro rail project was delayed by three years due to alignment changes, and now Revanth Reddy is acting similarly.
Centre's Support for Telangana Projects
Kishan Reddy emphasized that he has not obstructed Telangana's progress, as alleged by the CM. The BJP government and he have always supported developmental works in the state. He recalled that the Centre provided Rs 1,250 crore for Phase I of the Hyderabad metro rail project. “The central government, in principle, agreed to proceed with Phase 2 on a 50:50 cost-sharing basis. The Union Urban Affairs Minister conveyed this during meetings with me and the CM. The Centre provided Rs 1,250 crore for Metro Phase 1, and Prime Minister Modi personally inaugurated the project. As with metro projects in other cities, the Centre will support Hyderabad after technical discussions. It is not something that can be stopped simply because Kishan Reddy says no,” he stated.
Kishan Reddy also highlighted that the central government has sanctioned national highway projects worth Rs 1.75 lakh crore in Telangana, along with projects like the Kakatiya Mega Textile Park, modernization of 42 railway stations, and many others. Recently, the Centre provided Rs 11,000 crore in interest-free loans for 50 years, helped secure Rs 4,100 crore loans from the Asian Development Bank for the Musi rejuvenation project, and facilitated Rs 34,000 crore for paddy procurement.
