Overview
- The Telangana chief minister met Railway Minister Ashwini Vaishnaw in New Delhi on Monday, June 22, and received a strong assurance that the Indian Railway Finance Corporation loan will be facilitated but the funds have not yet been released.
- The loan—about Rs 13,527–13,600 crore—was agreed in a tripartite deal signed on May 25 to refinance Hyderabad Metro debt after the state paid Rs 1,461 crore to take over Phase‑I from L&T on April 29.
- IRFC halted disbursement after the May 30 deadline in the original memorandum of understanding because it sought firmer repayment terms and recovery safeguards such as a state guarantee and RBI direct‑recovery mechanism.
- The Centre has asked Telangana to rework repayment modalities to give IRFC a first charge on monthly metro revenues and the state has agreed to examine a revised MoU with follow‑up talks with the Union urban affairs minister scheduled for June 23.
- The delay is costing the state about Rs 2.5 crore a day in extra interest and has pushed cumulative interest above Rs 130 crore, which is slowing the formal takeover of Phase‑I and holding up approvals and central support for Metro Phase‑II.