Centre willing to proceed with HMR Phase II on 50:50 cost-sharing basis: Khattar

The Centre has, in-principle, raised no objection to Phase II of the Hyderabad Metro Rail (HMR) project and is willing to proceed on a 50:50 cost-sharing basis with the Telangana government, Union Minister for Housing and Urban Affairs Manohar Lal Khattar said on Wednesday (May 20, 2026).

According to an official release, Mr. Khattar conveyed this assurance to Union Minister for Coal and Mines G. Kishan Reddy, who is also Secunderabad MP, during a meeting in New Delhi.

Mr. Khattar noted that the Telangana government has already submitted proposals for the second-phase expansion of the HMR, covering 162 km. He assured that the Centre would give the proposal “positive consideration” and initiate “necessary further measures”.

Union Minister for Coal and Mines G. Kishan Reddy with Union Minister for Housing and Urban Affairs Manohar Lal Khattar said on Wednesday (May 20, 2026).
| Photo Credit:
BY ARRANGEMENT

Comprehensive examination of DPR

The meeting also reviewed key aspects of the Phase II project. Mr. Khattar indicated that, since the State government has taken over the project from L&T, the Centre would undertake a comprehensive examination of the Detailed Project Report (DPR) and other technical specifications. The remaining components of Phase II would be considered once the DPR and relevant information are received, following which an appropriate decision would be taken.

39 STPs sanctioned to treat wastewater flowing into Musi

The Ministers also conducted a joint review of major urban development initiatives underway in Hyderabad, particularly those related to the sanitation and rejuvenation of the Musi River. Mr. Khattar stated that under the Centre’s AMRUT 2.0 scheme, 39 sewage treatment plants (STPs) were sanctioned to treat wastewater flowing into the Musi. The projects have a total estimated cost of ₹3,975 crore.

These STPs will have a combined capacity to treat 972 million litres of sewage per day. The initiative is expected to prevent untreated wastewater from entering the river, while significantly contributing to its conservation and improving the city’s overall sanitation standards.

Mr. Khattar reiterated that the Centre is extending full cooperation for Hyderabad’s development and infrastructure enhancement. Mr. Reddy expressed his gratitude for the support, the release added.