The Telangana government has completed its acquisition of Hyderabad Metro Rail Phase I, signing a share purchase agreement with Larsen & Toubro to take over 100% equity in L&T Metro Rail (Hyderabad) Limited for Rs 1,461.47 crore.
Debt and refinancing
As part of the deal, the state will refinance the company’s outstanding debt of Rs 13,538.53 crore, which was previously backed by an L&T guarantee and will now carry a state government guarantee instead, with a refinancing facility of up to Rs 13,600 crore arranged through IRFC.
What the network looks like today
Hyderabad Metro Phase I has been operational since November 2017, spans 69 km across three corridors, and carries around 4.5 lakh passengers daily, with nearly 86 crore cumulative passenger trips recorded so far.
Why the state wanted full control
Officials said full ownership will allow smoother integration with the proposed Phase II expansion, giving the government direct authority over planning, execution and commuter services rather than negotiating through a private concessionaire. The transition is expected to shape fare policy and expansion timelines going forward.
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