Telangana govt takes over Hyderabad Metro Phase I from L&T for ₹15,000 crore
HYDERABAD: The Telangana government on Wednesday took over Phase I of the Hyderabad Metro Rail project from Larsen & Toubro (L&T), marking a key step toward expanding the network.
The state acquired 100% of the shares held by L&T Metro Rail (Hyderabad) Ltd for ₹1,461.47 crore. As of April 30, the project carried a debt of ₹13,538.53 crore, taking the total takeover value to about ₹15,000 crore.
An official said the project’s valuation exceeds ₹25,000 crore and added that the state secured a favourable deal.
Agreement signed; state to refinance debt
Hyderabad Metro Rail Ltd (HMRL) and L&T signed the share purchase agreement. HMRL managing director Sarfaraz Ahmed and L&T representative DK Sen signed on behalf of their organisations.
The Telangana government will now refinance the existing debt, replacing L&T’s earlier guarantee. Officials said they are in talks to secure loans at lower interest rates.
“We are negotiating for lower interest rates and awaiting Phase II approvals from the Centre,” a senior official said.
Centre mandate drives takeover
The Centre required a clear operational integration plan between Phase I and Phase II before approving expansion. This condition prompted the takeover.
The move is expected to speed up Phase II, which will span 162 km. Phase I currently covers 69 km. The state has proposed an initial 76.4 km stretch, followed by an additional 86.1 km, and has submitted both for approval.
Chief Minister A. Revanth Reddy said the government took the decision in public interest. He cited growing demand for metro connectivity in the Hyderabad Core Urban Region, including Shamshabad and Bharat Future City.
Since its launch, Hyderabad Metro Rail has recorded around 86 crore passenger journeys.
