Hyderabad Metro comes under Telangana govt control; L&T stake acquired for ₹1461 cr

Hyderabad: The Telangana government has taken full control of Hyderabad Metro Rail, acquiring 100% equity stake from L&T Metro Rail (Hyderabad) Limited (LTMRHL) for ₹1,461.47 crore.

The takeover follows a series of consultations between the state government and L&T, culminating in an agreement signed on Wednesday at the state secretariat in the presence of Chief Secretary K. Ramakrishna Rao, Special Chief Secretary Jayesh Ranjan and Hyderabad Metro Rail Limited managing director Sarfaraz Ahmed, along with representatives from L&T and LTMRHL.

Under the agreement, Hyderabad Metro Rail Limited has acquired the entire shareholding of LTMRHL. The state government will also facilitate refinancing of the project’s debt of ₹13,538.53 crore, which was earlier backed by L&T. IDBI Capital acted as transaction advisor, while Saraf and Partners provided legal counsel for the deal.

With the takeover of Phase-I operations, the government aims to enable better coordination in planning, execution and service delivery across both existing and proposed metro networks. Officials said the move is expected to strengthen the development of a more reliable and passenger-friendly metro system, while accelerating expansion under Phase-II.

Hyderabad Metro’s Phase-I network spans 69 km across three corridors and has been operational since November 2017. The system currently serves around 4.5 lakh passengers daily and has recorded over 86 crore cumulative ridership since launch.

Ahead of the agreement, L&T chairman S.N. Subrahmanyan met chief minister A. Revanth Reddy and discussed future operational and development aspects of the metro rail system.