Hyderabad: Hyderabad Metro debt refinancing received a major boost after Indian Railway Finance Corporation (IRFC) signed a Rs 13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Limited.
The agreement aims to refinance existing debt linked to the Hyderabad Metro Rail project. Officials described it as one of the largest refinancing transactions in India’s urban transit sector.
The agreement was signed in New Delhi in the presence of IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao.
According to officials, the loan carries a 20-year tenure with quarterly repayments. The agreement also includes waiver of processing fees, commitment charges and prepayment penalties.
The funds will refinance existing non-convertible debentures, commercial papers and term loans linked to the metro project.
Hyderabad Metro debt refinancing strengthens expansion plans
Officials said the refinancing would reduce the financial burden on Hyderabad Metro and improve the project’s long-term sustainability.
Following the agreement, the ownership of L&T Metro Rail Hyderabad Limited will fully transfer to the Telangana government. Hyderabad Metro will then function as a public transport asset under the state government.
The refinancing package includes credit support through a Telangana government guarantee, unconditional undertaking and RBI-backed direct debit mechanism.
Authorities said the financial restructuring would support future expansion plans, including Phase-I extension works and new metro corridors in Hyderabad.
IRFC CMD Manoj Kumar Dubey said the agreement reflected IRFC’s growing role in financing major infrastructure projects beyond the railway sector.
Chief Secretary Ramakrishna Rao said the Telangana government remained committed to strengthening Hyderabad’s transport infrastructure under the leadership of Chief Minister A. Revanth Reddy.
He added that stronger metro connectivity would help reduce traffic congestion and improve sustainable urban mobility in Hyderabad.
Ramakrishna Rao also thanked the Centre, IRFC, L&T and Hyderabad Metro Rail Limited teams for supporting the refinancing agreement.