High Exam Priority
SBI Caps Faces Hurdles Finding ₹13,500 Cr Loan for Hyderabad Metro Phase-I Takeover
25 September 2026
4 min read
The Telangana government's plan to take over the Hyderabad Metro Rail Phase-I has hit a roadblock as financial institutions are hesitant to provide a ₹13,500 crore loan at the low interest rates sought by the state. Consequently, the proposed ₹38,595 crore Phase-II expansion is also facing severe delays.
Key Highlights
- SBI Caps has been unable to finalize a deal with lenders for a ₹13,500 crore loan required for the Hyderabad Metro Rail (HMR) Phase-I government takeover.
- Lenders are reluctant to offer the funds at the low interest rates demanded by the Telangana government.
- The 69.2-km HMR Phase-I was originally built under a Public-Private Partnership (PPP) model with Larsen & Toubro (L&T).
- Delays in the Phase-I buyout have stalled the proposed 122.9-km Phase-II expansion estimated at ₹38,595 crore.
Exam Quick Facts
Nodal Ministry / Dept
Government of Telangana (Municipal Administration and Urban Development Department)
Key Bodies
SBI Caps, Larsen & Toubro (L&T), IDBI Capital, DMRC International
Constitutional & Legal Context
Public-Private Partnership (PPP) framework governed under central and state infrastructure development policies.
Static GK Connection
The Hyderabad Metro Rail is recognized as the world's largest metro rail project in PPP mode for a single phase.