Later this month, the bustling streets of Hyderabad’s old city will see the rumble of diggers – not for routine road works, but to mark a transformative step in the city’s urban transit story.
The much-awaited Phase II of the Hyderabad Metro Rail (HMR) project is about to begin, starting with the demolition of around 400 properties along the 3.5 km stretch from Darulshifa to Shalibanda.
This marks the beginning of land acquisition for the long-pending Metro overhead line connecting Mahatma Gandhi Bus Station (MGBS) to the proposed Chandrayangutta Junction station, a distance of 7.5 km.

Following the demolition, roads will be repaired while barricades will be erected to manage traffic and a geotechnical study will be conducted next month. These preparatory activities will pave the way for the construction of huge pillars and bridges over which the metro rail tracks will be laid.
This metro line is part of the five new corridors proposed by the current Congress government in Telangana, spanning 76.4 km at an estimated cost of ₹24,269 crore. The project, to be undertaken as a joint venture between the state government and the Centre, involves a significant loan component of ₹11,653 crore (48%). In the financial partnership, the State will contribute ₹7,313 crore (or 30%) and the Center will contribute ₹4,230 crore (or 18%), along with a sovereign guarantee.
It’s been a long wait – 10 years to be precise – but the wheels of Hyderabad’s metro rail expansion are finally turning again. The recommendation comes seven years after HMR started the first phase of commercial operations across three corridors comprising 57 stations: the 29-km Red Line from Miyapur to LB Nagar, the 29-km Blue Line from Nagole to Rayadurg and the 11-km Jubilee Bus Line. Green Line from station to MGBS. These corridors were opened in phases starting in November 2017, with the final extension from JBS to MGBS being inaugurated in February 2020.
Chief Minister A., who is driving this new momentum. Revanth Reddy, who has taken a pragmatic approach to the revised blueprint of the Metro. Under his leadership, the project implementing agency, Hyderabad Airport Metro Limited (HAML) has been tasked with integrating the existing metro lines into a seamless circular loop. This includes connecting the terminal stations at Nagole and LB Nagar and connecting all corridors extending up to Rajiv Gandhi International Airport (RGIA) at Shamshabad on the outskirts of Hyderabad to the proposed metro route.
“When we launched the first phase in 2017, we were the second largest metro rail network in the country after Delhi Metro,” says NVS Reddy, managing director of HMR and HAML.
“Now, we are at the third position with the expansion of Delhi Metro by 415 km and Bengaluru by 74 km. If we delay further, we risk slipping to ninth place, as Mumbai, Chennai and other cities are investing heavily, between ₹50,000 crore and ₹1 lakh crore, on building new metro lines,” he said. Let us tell.
According to him, metro projects spanning about 980 km are currently under construction in 19 cities of the country.

outline
As the person who drove the first phase of HMR from concept to commissioning, NVS Reddy is confident of delivering this expansion within four years once the JV and loan agreement is finalized. He says taking advantage of the latest construction technologies, including the use of U-shaped girders for viaducts, can speed up the process.
“Except for the old city extension of about six km, where properties are being acquired under the Land Acquisition Act, very little private land is required for the second phase. Right of way (ROW) is easily available in most of the proposed corridors, and we plan to use government land for stations, parking and depots,” he explains.
Expressing confidence that the Center will soon give approval for the joint venture, he says, “The work will first start in the old city, and we will ensure that none of the 106 religious and heritage structures are disturbed. Engineering solutions will allow us to bypass these sites. “Property owners in the area are being generously compensated, with ₹65,000 per square yard being offered against the official rate of ₹23,000 per square yard.”
Similar to the first phase of HMR, the second phase will feature a large-scale elevated bridge, except for an underground extension of 1.6 km inside the RGIA. All the proposed new lines are extensions of the existing 69.2 km from phase one: the Red Line from Miyapur to Patancheru, the Blue Line from Rayadurg to Kokapet, and the Green Line from MGBS to Chandrayangutta.
The airport will be accessible from all three metro lines, with seamless connections through the extension connecting Nagole and LB Nagar stations. A twin station will be set up at Nagole to serve Blue Line passengers heading towards the airport, while Green Line passengers can board at Chandrayanagutta Interchange station. People on the Red Line will have the option to join the route at MGBS or LB Nagar.
What distinguishes the second phase is its completely new financial model, which is different from the first phase, which was executed as the world’s largest public-private partnership (PPP) metro project.
In the first phase, the government invested ₹2,970 crore, of which ₹1,204 crore was provided by the Center as ‘viability gap funding’, and the concessionaire, L&T Metro Rail Hyderabad (L&TMRH) invested ₹17,974 crore. .
“The first phase of HMR is the only metro rail project to be operated under the PPP model among the 23 ongoing metro ventures in the country,” explains KVB Reddy, CEO and Managing Director, L&TMRH.
“We secured a loan of ₹11,000 crore from banks led by State Bank of India at 10% interest rate. Although we are the best in managing operating expenses, we have incurred losses due to high interest rates on capital investments. However, we have reduced our debt through financial re-engineering and reduced our interest rate to 6%,” he revealed.
joint venture model
What makes phase two economically viable is the Centre’s joint venture model, which includes sovereign guarantee. This important provision allows loans to be secured from multilateral agencies such as the World Bank, Asian Development Bank or Japan International Cooperation Agency at an interest rate of only 2%.
Managing Director of HMR says that these loans come with long repayment periods and moratorium for the first few years.
However, this sovereign guarantee does not extend to the private sector. “More PPP projects can succeed if such an option is made available to them,” said the L&TMRH CEO.
L&TMRH is set to step in as the EPC (engineering, procurement and construction) contractor for the second phase once the tenders are issued, expected sometime next year. “We are ready to be a part of the development story of Telangana. We have the full spectrum of expertise – civil, electrical, signaling and communications. Only rolling stock needs to be purchased. No other firm has this capability. We have 2,500 engineers working on minimizing construction time. If RoW is provided we can deliver much faster,” says KVB Reddy.
Meanwhile, the first phase of the Hyderabad Metro has grown rapidly, now carrying around 4.75 lakh passengers daily, with a peak ridership of 5.64 lakh. This is a significant increase from the initial 20,000 passengers when operations began in November 2017.
Currently, 57 three-coach train sets run daily, serving 1,075 trips with a frequency of 2.5 to 5 minutes during peak hours and 7 to 10 minutes during non-peak hours.
Furthermore, the system maintains an impressive punctuality rate of 99.86%.
For the second phase, HAML has ‘conservatively’ estimated that the five new routes, once operational, can easily handle eight lakh passengers per day, which is likely to increase to 10 lakh. This estimate is not far-fetched given the ridership increases seen in other cities. Following the expansion of metro lines with better inter-connectivity, daily ridership in Bengaluru, Nagpur and Pune has doubled – from 60,000 to 1.5 lakh and even 7.5 lakh. Metro Rail officials say that after the addition of new lines, the number of daily passengers in Chennai has also increased from 40,000 to 2 lakh.
Reshaping urban travel
The government’s recent announcements regarding phase two have also raised anticipation among passengers. “I have been using the Metro since the commencement of phase one, but since it currently ends at Miyapur, I am forced to take an autorickshaw to reach my home in Madinaguda. The proposed expansion of Patancheru will be a boon for many residents of this part of the city, connecting us to other suburbs,” said management consultant U. Krishna says Veda (54).
Residents of the old city, sidelined in the first phase, are particularly optimistic. “We are hopeful that the metro will finally meet our needs,” says MA Haq, 50, a private company employee. “Many employees, students and others live near bus and railway stations or in areas like Hi-Tech City and Raidurg. They use existing services to reach, but from far-flung places like Malakpet or MGBS. Everyone is looking forward to the new services and will welcome it with open arms.”
But, of course, not everyone is completely satisfied with the routes proposed for phase two. Citizens like M. Sampath Reddy and BJP leader S. Malla Reddy are urging the government to include other fast-growing residential areas like Medchal via Kompally, Shameerpet via Thumkunta, Suraram-Gandimisamma and ECIL-Keesara.
Kanchana, another resident, questions why Mehdipatnam was left out of the plan.
When asked about these concerns, NVS Reddy clarifies, “There are a lot of demands from different sectors, but we cannot cover every route at once. Since 2017, the Center has made RoW – a wide road with space for utilities like power, telecom and water pipelines – a pre-condition for approving metro rail projects. We will consider other areas in later stages as the city continues to expand.”
focus area
Residents also highlight other challenges that need to be addressed. B.Rajendra Prasad of Saroornagar stressed the importance of improving first and last mile connectivity in residential colonies in collaboration with Telangana State Road Transport Corporation (TGSRTC) and other transport agencies.
Similarly, graduate student MA Hadi advocates a common ticketing system integrating all modes of public transportation.
Another frequent concern among commuters is the lack of adequate parking facilities, which many believe requires immediate attention.
The Center has mandated the implementation of the National Common Mobility Card for all public transport systems, with the aim of rolling it out across the country next year, Metro Rail officials said. However, negotiations with TGSRTC on route and service integration have not yet progressed. Officials believe the intervention of top political leaders could accelerate cooperation and pave the way for seamless connectivity.
“Private players are allowed to operate shuttle services between specific destinations, but only TGSRTC is allowed to provide pick-and-drop services at multiple points,” an official clarified.
With regard to parking facilities, lessons from the first phase are being used.
For the second phase, officials plan to secure enough land to provide adequate parking at the proposed 54 stations across five corridors.
NVS Reddy is optimistic about the progress of the second phase and says it will be an easier task than the first phase, which took seven years to complete.
“The Chief Minister is monitoring the work closely. They have conducted 10 reviews and also ensured release of funds for initial works,” he says.
Encouraging public participation, the HMR chief invited citizens to contribute to the project by suggesting station locations, numbers of stations and even their names, underscoring the collaborative spirit driving the expansion of the metro rail. Have done.
published – December 06, 2024 05:39 am IST





