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On Wednesday, the state government took control of Phase I of the Hyderabad Metro Rail project and its operations from Larsen and Toubro (L&T), an important step for the Telangana government's plan to expand the metro network to areas like Shamshabad, Bharat Future City, and other parts of Hyderabad. The
expansion will be carried out through a joint effort between the state government and the central government.
Hyderabad Metro Takeover by Telangana Government
The state government bought 100% of the shares held by L&T Metro Rail (Hyderabad) Ltd (LTMRHL) for Rs 1,461.47 crore. Officials said that projects of this scale are usually valued at over Rs 25,000 crore, but the government managed to negotiate a better deal. The agreement was signed by representatives from Hyderabad Metro Rail Limited (HMRL), L&T, and LTMRHL.
Along with the shares, the government also took responsibility for the company's debt, which stood at Rs 13,538.53 crore as of April 30. Earlier, this debt was guaranteed by L&T, but now it will be refinanced with support from the Telangana government. Together, the equity and debt bring the total takeover value to around Rs 15,000 crore.
Hyderabad Metro Phase II Expansion
Officials said they are working to secure loans at lower interest rates and are waiting for approval from the central government for Phase II of the project. The Centre had made it necessary to have a clear agreement linking Phase I and Phase II operations before approving further expansion, which is why this takeover was important. With this development, the government can now move ahead with Phase II, which will cover about 162 km, and plans for Phase II expansion in two stages have already been submitted.
Chief Minister A Revanth Reddy said the decision was taken in the public interest, as there has been growing demand to extend metro services. So far, the metro has recorded around 86 crore passenger journeys.
