Hyderabad: Telangana chief minister A Revanth Reddy has urged Prime Minister Narendra Modi to approve the Hyderabad Metro Rail phase 2 project worth Rs 24,269 crore.
Reddy also sought approval for other key projects including Regional Ring Road, and semiconductor and defence initiatives, citing their importance for Telangana’s economic growth and national development on the sidelines of the NITI Aayog meeting in Delhi on Saturday, May 24.
Hyderabad Metro Rail phase 2
The Telangana CM stressed the urgent need to to expand Hyderabad’s metro network, pointing out that no expansion had been taken up in the last decade. While Phase 1, covering 69 km, was implemented for Rs 22,000 crore, the proposed Phase 2 includes five new corridors spanning 76.4 km, at an estimated cost of Rs. 24,269 crore.
The Hyderabad Metro Rail Phase 2 is a joint venture between the Telangana government and the Centre. 18 percent (Rs 4320 crore) funding has to come from the Centre, 30 percent from the state (Rs 7,313 crore), and the remaining 48 percent (Rs 11,693 crore) raised through debt.
The proposal was submitted to the ministry of housing and urban affairs (MoHUA) on November 4, 2025. All clarifications sought by the ministry have been addressed, and the chief minister requested immediate cabinet approval to move the project forward.
He also cited the approvals for metro expansions in Chennai and Bengaluru, arguing that Hyderabad deserves similar support.
RRR
Reddy called for parallel sanction and execution of both the Northern and Southern corridors of the proposed 340-km Regional Ring Road encircling Hyderabad.
While work on the Northern section—covering Sangareddy to Choutuppal—is already underway with 90 percent land acquisition approvals submitted, the Southern section—extending from Choutuppal to Sangareddy via Amangal and Shadnagar—has not yet been cleared.
Revanth Reddy also made it clear that delaying the Southern section would lead to significant cost escalation and reduced utility of the overall project. He affirmed the state’s willingness to share 50 percent of the land acquisition costs for both corridors.
Additionally, the chief minister proposed a 370-km Regional Ring Railway line running parallel to the RRR to further strengthen regional connectivity and boost economic activity across the surrounding districts.
To support Telangana’s strong industrial and export sectors, particularly its 35 per cent contribution to India’s pharmaceutical production, Reddy also requested support for a greenfield highway and a dedicated railway line connecting the proposed Dry Port near Hyderabad with Bandar Port.
These projects aim to improve freight movement, reduce logistics costs, and enhance the competitiveness of Telangana’s manufacturing sector.
Semiconductor and electronics manufacturing
Emphasizing Telangana’s readiness to contribute to the India Semiconductor Mission (ISM), the chief minister sought central approval for a semiconductor fabrication project in the state. Hyderabad is already home to global R&D centres such as AMD, Qualcomm, and NVIDIA, along with major manufacturers like Foxconn and Kaynes.
Reddy highlighted the state’s strengths—industrial land availability, skilled workforce, infrastructure, and seismic safety and stressed that approval of the ISM project would enhance investor confidence, generate high-value jobs, and support India’s target of USD 500 billion in electronics production by 2030.
Strengthening defence manufacturing
Revanth Reddy also sought the Prime Minister’s intervention to boost Telangana’s role in defence production. Hyderabad is India’s largest aerospace and defence manufacturing hub, supported by DRDO laboratories, over a dozen defence PSUs, and more than 1,000 MSMEs supplying to national and global OEMs.
The CM requested fast-track approvals for defence joint ventures and offset projects, a dedicated approval mechanism to attract global OEMs, and inclusion of the Hyderabad-Bangalore corridor as an officially recognized Defence Corridor, ensuring parity with existing corridors in Uttar Pradesh, Tamil Nadu, Gujarat, and Andhra Pradesh.
He also proposed that Hyderabad be chosen as the host city for the next edition of DefExpo, India’s flagship defence exhibition.
Policy incentives for MSMEs
Reddy also urged the Centre to provide production-linked incentives (PLI) and tailored policy support for defence-focused MSMEs in Telangana. Given the high capital investment and long gestation periods involved, such support is critical to sustaining and scaling up their contribution to the national defence ecosystem.
