Telangana Government releases Rs 125 cr for HMRL

Hyderabad: With no tangible progress in receiving loans sought from various sources, including banks, to bail out the Hyderabad Metro Rail Limited (HMRL) from its financial crisis, the state government released a Rs 125 crore loan for the HMRL on Monday. The state government had taken over the Metro Rail form L and T, agreeing to bear all its expenditure from the state exchequer, as the Centre rejected the loan sanctioned by Indian Railways Finance Corporation recently.

The State Municipal Administration and Urban Development Department issued the orders releasing Rs 125 core as loan for the Metro Rail project. Out of Rs 500 crore earmarked in the current financial year for the Metro Rail, the first instalment of the loan amount was released.

The HMRL has been struggling due to financial crisis even after the state government took full control of the Metro Rail from the L and T company in April this year. The state government would have to take care of the financial needs the Metro Rail, which has been facing fund crunch for the last seven months, according to officials. The Metro Rail has imposed the state government a burden of at least Rs 2 crore towards its maintenance and payment of the interest on the loans transferred from the agency to the state government.

The government has made all-out efforts to clear the debts of Rs 13,500 crore absorbed from the L and T company and succeeded in convincing the Indian Railway Finance Corporation. However, the Centre raised objections and stalled the release of loans for various reasons and also instructed the SBI CAPS to submit a report on the Metro Rail’s financial position.

Subsequently, there has been no further action till date. Hence, the state government has been forced to meet the financial requirements of the Metro Rail. “Now, the government is releasing the funds from the state exchequer to meet the financial requirement of the Metro Rail until the central agency makes recommendations to set things right,” sources said. Even as the Metro Rail phase -2 is still pending approval by the Centre, the state government sanctioned Rs 150 crore to the HAML (Hyderabad Airport Metro Rail Limited) in June for its administrative needs. The government has been pursuing the Centre for the approval of the Metro phase -2 since 2024, but the latter has not yet responded positively.

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Patan Afzal Babu

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Patan Afzal Babu is an experienced journalist specializing in political and state Administration. With over 20 years of writing expertise, Afzal Babu contributes new content in the areas of politics and administration. Afzal has completed post-graduation from Hyderabad Central University (with a specialization in Journalism). Afzal Babu is an accomplished writer with a passion for writing political news and breaking news. With over 20 years of experience, Afzal honed skills in various genres, including major crime news. Afzal’s diverse family history and embracing cultures have enriched writing with unique perspectives.

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