Hyderabad: The Hyderabad Metro Rail takeover was completed after the Telangana government acquired full ownership of the project from Larsen & Toubro for ₹1,461.47 crore, officials said on April 29.
The government executed a Share Purchase Agreement to acquire 100% equity of L&T Metro Rail (Hyderabad) Limited. Moreover, officials said the move would strengthen planning, expansion and passenger services across the network.
The decision followed earlier proposals to bring Phase-I under Hyderabad Metro Rail Limited (HMRL). Subsequently, the government held discussions with L&T before finalising the takeover agreement.
A meeting at the State Secretariat was attended by senior officials, including K. Ramakrishna Rao, Jayesh Ranjan and HMRL Managing Director Sarfaraz Ahmad. The agreement was signed by representatives of HMRL, L&T and LTMRHL, with financial and legal advisors supporting the process.
Hyderabad Metro Rail takeover to enable expansion integration
Under the agreement, debt of ₹13,538.53 crore will be refinanced with a state government guarantee. Therefore, officials said the restructuring would support long-term sustainability and operations.
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 across the city.
Officials said cumulative ridership has reached around 86 crore trips. As a result, the system remains a key urban transport backbone for Hyderabad.
With the Hyderabad Metro Rail takeover, the government plans to integrate Phase-I with the proposed Phase-II expansion. This is expected to improve execution efficiency and commuter experience.
Before finalising the deal, L&T Chairman S. N. Subrahmanyan met Chief Minister A. Revanth Reddy to discuss the transition. Officials added that the takeover would help build a more reliable and commuter-focused metro system.
