Hyderabad: The Revanth Reddy-led government has initiated the expansion of the Hyderabad Metro Rail, which is set to extend across six routes, covering a distance of 70 kilometers. This expansion requires significant funding, prompting the state government to engage in discussions with the Japan International Cooperation Agency (JICA).
Preliminary estimates suggest the metro expansion will cost up to ₹17,500 crores. Typically, such projects are funded with the state government contributing 35%, the central government 15%, and the remaining 50% obtained through loans. However, this time, the state government is exploring a new model, where 5% of the 50% will be through government and private partnership (PPP), with the remainder sought as long-term loans.
In this context, Chief Minister Revanth, Deputy CM Mallu Bhatti Vikramarka, and senior officials have held discussions with representatives of JICA India. JICA has previously approved loans totaling ₹1.07 lakh crores for metro rail projects in Chennai, Mumbai, Kolkata, Delhi, Bangalore, Patna, and Ahmedabad. The interest rates for JICA loans are reportedly between 2% to 3%, as stated by officials.
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