Overview The central government has given its in-principle approval for the construction of Hyderabad Metro Rail (HMR) Phase-II . However, progress is contingent upon the Telangana government nominating two officials to a Joint Committee (JC) . This committee, which will also include two central government officials, is designed to coordinate the handover of Phase-I and oversee preparatory work for Phase-II , according to Union Minister for Housing and Urban Affairs (MoHUA) Manohar Lal Khattar . Key Developments Communication Between Central and State Governments Union Minister for Coal & Mines G. Kishan Reddy communicated this development in a letter to Chief Minister A. Revanth Reddy on Friday, January 16, 2026 . The letter followed a meeting between Mr. Kishan Reddy and Mr. Khattar in New Delhi, where the progress of HMR Phase-II proposals was discussed. Mr. Khattar indicated that the Centre will convene the JC once the State Government submits its nominations. Conditions for Moving Forward Mr. Khattar emphasized that the takeover of HMR Phase-I from L&T by the Telangana government must be completed first. He stated that all agreements, decisions, and financial transactions related to this process must be finalized before the Centre can proceed with Phase-II . State Government's Role Mr. Kishan Reddy reminded the Chief Minister that MoHUA has not yet received the names of the two State government nominees. He urged the government to expedite the nominations to avoid further delays. He also requested that the takeover of Metro Phase-I from L&T be expedited and that the proposals for Phase-II be submitted to the Government of India thereafter. Project Details and Objectives The Chief Minister has announced the decision to complete the takeover of HMR Phase-I from L&T , after which metro operations and services will be run by the Government to address Hyderabad’s traffic challenges and improve public transport infrastructure. The HMR Phase-II A & B proposals span a total of 162 km across eight corridors and cost ₹42,000 crore . UPSC Relevance This news article is relevant to the UPSC Civil Services Exam for the following reasons: GS Paper II (Governance, Polity, Social Justice): Highlights Centre-State relations and the importance of cooperative federalism in infrastructure development. GS Paper III (Economy, Infrastructure): Discusses urban infrastructure projects, their financing, and their impact on economic development and urban transportation. Important Facts Project: Hyderabad Metro Rail (HMR) Phase-II Approval: Agreed in principle by the Centre Condition: Formation of a Joint Committee (JC) with State Government nominees Phase-I Takeover: Must be completed before Phase-II proceeds Phase-II Scope: 162 km across eight corridors Phase-II Cost: ₹42,000 crore