Hyderabad Metro Phase I Valuation and Phase II Funding: Telangana, Centre Appoint SBICAPS as Consultant

Hyderabad's ambitious metro expansion just hit a fresh crossroad as the Telangana government and the Centre have jointly tapped SBICAPS to untangle the complex finances of Phase I and chart the future of Phase II. This move, coming hot on the heels of the stalled ₹13,600 crore loan from the Indian Railway Finance Corporation (IRFC) for the state's takeover of Phase I, signals a potential reset in strategy and highlights the financial hurdles facing critical urban infrastructure projects. The decision to bring in SBICAPS follows intense discussions between Telangana Chief Minister A. Revanth Reddy and key Union Ministers, underscoring the high-stakes negotiations between the state and central governments over funding for this vital urban lifeline. The stakes are sky-high for Hyderabad, a booming tech hub grappling with rapid urbanization and escalating traffic. While Telangana announced in April 2026 it had acquired L&T's 100% equity in Phase I for an estimated ₹15,000 crore, the subsequent hold-up in IRFC loan disbursement has left the state reportedly shouldering ₹2.5 crore daily in interest on existing high-cost loans. Meanwhile, the proposed Phase II, an expansive 122.9 km network across eight corridors projected to cost ₹38,595 crore, has seen its budget swell by ₹1,915 crore due to delays, even as the Centre has given 'in-principle' approval for a 50:50 joint venture funding model. The appointment of SBICAPS now casts doubt on whether earlier financial and technical due diligence reports will be set aside, potentially sending the entire takeover and expansion plan back to square one. Now, all eyes are on SBICAPS to deliver a comprehensive roadmap, not just on Phase I valuation and takeover financing, but also on the financial structuring and expansion blueprint for Phase II. This report will be the bedrock for the state and Centre to finalize the next steps, including identifying new lenders and potentially redefining the funding modalities. With CM Revanth Reddy having previously expressed a willingness for Telangana to fully fund Phase II if the Centre provides an NOC, the coming months will reveal if this new consultancy brings clarity or further political wrangling over Hyderabad's metro future.