Hyderabad: Hyderabad Metro debt refinancing received a major push after Indian Railway Finance Corporation (IRFC) signed a ₹13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Limited.
Officials described the agreement as one of the largest refinancing transactions in India’s urban transport sector. The deal aims to refinance existing liabilities linked to the Hyderabad Metro Rail project and improve its long-term financial sustainability.
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 repayment tenure with quarterly instalments. The agreement also includes waiver of processing fees, commitment charges and prepayment penalties.
The refinancing package will cover existing non-convertible debentures, commercial papers and term loans associated with the metro project.
Officials said the restructuring would significantly reduce the project’s financial burden and support smoother operational management in the coming years.
Hyderabad Metro debt refinancing supports expansion plans
Authorities stated that ownership of L&T Metro Rail Hyderabad Limited would fully transfer to the Telangana government following the refinancing arrangement. Hyderabad Metro would then function as a public transport asset under the State government.
The refinancing package also includes credit support through a Telangana government guarantee, an unconditional undertaking and an RBI-backed direct debit mechanism.
Officials said the financial restructuring would support future expansion projects, including Phase-I metro extensions and proposed new corridors in Hyderabad.
IRFC CMD Manoj Kumar Dubey said the agreement reflected the corporation’s growing role in financing large infrastructure projects beyond the railway sector.
Chief Secretary Ramakrishna Rao said the Telangana government remained committed to strengthening Hyderabad’s urban transport infrastructure under the leadership of Chief Minister A. Revanth Reddy.
He added that improved metro connectivity would help reduce traffic congestion and support sustainable urban mobility across Hyderabad.
Ramakrishna Rao also thanked the Centre, IRFC, L&T and Hyderabad Metro Rail Limited teams for facilitating the agreement.
