Telangana secures Metro ownership

metro india news  I hyderabad

In a significant development aimed at strengthening urban transport infrastructure, the Government of Telangana has formally taken over the operations of the Hyderabad Metro Rail Phase I from Larsen & Toubro Limited and its subsidiary L&T Metro Rail Hyderabad Limited. The transition was completed through a Share Purchase Agreement, under which the state acquired 100 percent equity shares of LTMRHL for Rs 1,461.47 crore.

The agreement was finalized at a high level meeting held on Wednesday, attended by CM, senior officials including Chief Secretary K. Ramakrishna Rao, Special Chief Secretary for Municipal Administration and Urban Development Jayesh Ranjan among others. 

Representatives from L&T also participated in the meeting The agreement was signed by Sarfaraz Ahmed on behalf of Hyderabad Metro Rail Limited, D.K. Sen representing L&T, and KVB Reddy from LTMRHL.

As part of the arrangement, the existing debt of Rs 13,538.53 crore associated with LTMRHL, as of April 30, 2026, will be refinanced with backing from the Telangana government. IDBI Capital acted as the transaction advisor, while Saraf & Partners provided legal advisory services.

The Hyderabad Metro Rail Phase I network, operational since November 2017, spans approximately 69 kilometers across three corridors. It currently serves around 450,000 passengers daily and has recorded nearly 860 million passenger journeys since inception.

With the state assuming control, authorities aim to ensure better coordination between the existing Phase I and the proposed Phase II expansion. The move is expected to enhance planning, execution, and service delivery, ultimately resulting in a more integrated, reliable, and commuter friendly metro network for Hyderabad.