Hyderabad: The Hyderabad Metro Rail takeover was completed as the Telangana government acquired full control of the project from Larsen & Toubro.
The government signed a Share Purchase Agreement to acquire 100% equity of L&T Metro Rail (Hyderabad) Limited for ₹1,461.47 crore. Moreover, officials said the move would improve planning, expansion and passenger services.
The decision followed earlier plans to bring Phase-I under Hyderabad Metro Rail Limited (HMRL). Subsequently, discussions were held with L&T before finalising the agreement.
Hyderabad Metro Rail takeover formalised through agreement
A meeting at the State Secretariat was attended by K. Ramakrishna Rao, Jayesh Ranjan and HMRL Managing Director Sarfaraz Ahmad.
The agreement was signed by Sarfaraz Ahmad for HMRL, D.K. Sen for L&T and K.V.B. Reddy for LTMRHL. In addition, IDBI Capital acted as the transaction advisor, while Saraf & Partners provided legal advisory support.
Under the agreement, debt of ₹13,538.53 crore will be refinanced with a state government guarantee. Therefore, financial restructuring will support long-term operations.
Hyderabad Metro Rail takeover to boost passenger services
Since November 2017, L&T Metro Rail (Hyderabad) Limited operated Phase-I across three corridors spanning 69 km. Currently, about 4.5 lakh passengers use the metro daily.
Officials said cumulative ridership reached around 86 crore trips. As a result, the network remains a key urban transport system.
With the Hyderabad Metro Rail takeover, the government will integrate Phase-I with the proposed Phase-II expansion. This will improve execution and service delivery for commuters.
Before the agreement, L&T Chairman S. N. Subrahmanyan met Chief Minister A. Revanth Reddy. During the meeting, they discussed key aspects of the transition.
Officials said the takeover would create a more reliable and commuter-friendly metro system. Meanwhile, the government plans to strengthen infrastructure and connectivity.