The Congress government has asked the Central government to approve forming a Joint Venture (JV) to fund and clear approvals for Hyderabad Metro Rail (HMR) Phase II. Chief Minister A. Revanth Reddy confirmed plans to take over the project from Larsen & Toubro (L&T) next month after completing financial and legal formalities. Consultants from IDBI Bank and Delhi Metro Rail Corporation (DMRC) are reviewing the financial and technical details of the takeover. They are looking into ₹13,000 crore debt and ₹2,000 crore equity linked to the project. The existing Hyderabad Metro Phase I has some unresolved issues. The empowered committee from Centre and State will review these before clearing the Detailed Project Report (DPR) for Phase II-A and II-B. These new phases will cover 162 km across eight corridors and cost about ₹42,000 crore. One main concern is the 7.5 km corridor from Mahatma Gandhi Bus Station (MGBS) to Chandrayangutta in the Old City. Road widening here went smoothly with nearly 500 structures cleared after ₹400 crore compensation. But a recent court case may slow plans. This corridor will link to the 36.6 km Nagole-Rajiv Gandhi International Airport line, with Chandrayangutta as an interchange. During Phase I, work on the Jubilee Bus Station (JBS) to Falaknuma Green Line was stopped at MGBS due to protests by AIMIM over heritage and religious sites. This delay caused the Centre to withhold ₹254 crore of the viability gap funding. Since then, L&T Metro Rail Hyderabad built extra links to keep trains running despite not completing the MGBS-Falaknuma stretch. The project grew more complex after the previous BRS government gave L&T an interest-free ₹3,000 crore loan in 2022 to cover losses, but progress remained slow due to right-of-way issues. After taking office, Chief Minister Revanth Reddy pushed the project again, laying the foundation stone for the Old City stretch in March 2024, in the presence of Hyderabad MP Asaduddin Owaisi. The government ensured heritage sites would be protected by using special engineering for viaducts and stations. These past issues with Phase I may affect financial settlements with L&T and the Centre’s decision on the Phase II DPR and plans.