Joint Metro Plan to Cut Interest Costs: Kishan Reddy

Union Minister Kishan Reddy stated that the Centre and the Telangana government are considering jointly moving forward with metro rail projects to avoid increasing the financial burden on the public. He said that discussions between Union ministers and the Chief Minister recently led to this idea. If the state undertakes Metro Phase 1 and Phase 2 projects independently, it would have to bear interest rates of 10 to 12 percent on loans. However, with central support, loans can be secured at significantly lower interest rates of 2 to 4 percent, reducing the burden by nearly 8 percent.

Speaking to the media after a meeting on the Tadicherla-2 block allocation, Kishan Reddy suggested that a joint venture approach would be beneficial. He noted that the state may need to raise nearly ₹54,000 crore for the metro expansion. With central assistance, these loans would not face FRBM constraints. He added that discussions involving himself, Union Minister Ashwini Vaishnaw, and Chief Minister Revanth Reddy covered Metro Phase 1 sustainability and Phase 2 expansion. The final decision rests with Union Urban Development Minister Manohar Lal Khattar, and a consultant may be appointed, which could delay the expansion. He also clarified that there is no political angle to the delay.