Kishan Reddy Denies Political Interference in Hyderabad Metro Refinancing Loan Delay

On Tuesday, Union Minister G Kishan Reddy dismissed allegations of political interference in the delay of the Hyderabad Metro refinancing loan, clarifying that the issue stems from technical disagreements between the Centre and the Telangana state government. Speaking at a press conference in New Delhi, the minister rejected charges made by Telangana Chief Minister A Revanth Reddy regarding the funding of the transit system in Hyderabad.

According to Kishan Reddy, the delay is related to loan repayment priorities. He explained that metro rail corporations across the country typically do not prioritize loan repayments over operations and maintenance (O&M) requirements. He argued that revenue generated by the metro services should first cover these essential O&M expenses to ensure the system's sustainability before servicing debt obligations.

Kishan Reddy stated that the state government, however, wanted loan repayments to be prioritized using the metro's earned revenue. He noted that Chief Minister Revanth Reddy did not agree to prioritize O&M expenses first.

The Union Minister challenged the Chief Minister to substantiate his allegations of political interference. He questioned whether Revanth Reddy could name the specific minister who allegedly told him that Kishan Reddy had requested the funding to be stopped.

Kishan Reddy noted that the Telangana government had previously entered into an agreement to secure Rs 13,500 crore. He emphasized that the outstanding issues are technical in nature and should be resolved through discussions among the concerned stakeholders, rather than public criticism.

He added that Chief Minister Revanth Reddy had met with Union Minister Manohar Lal Khattar multiple times regarding the loan, and certain modifications had been suggested. Kishan Reddy stated that after speaking with Khattar, it was clear that neither side currently has complete clarity on the loan issue, requiring further dialogue to resolve the matter.

Additionally, the Union Minister defended the Central government's cooperation with Telangana, highlighting a recent sanction of Rs 11,000 crore in interest-free loans with a 50-year repayment period, as well as a Rs 4,100-crore loan from the Asian Development Bank for the rejuvenation of the Musi river.