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The Telangana government has moved ahead with plans to take over the Hyderabad Metro Rail from Larsen & Toubro, with the process targeted for completion by March 2026. The state will acquire L&T’s equity for INR 2,000 crore and assume outstanding debt of around INR 13,000 crore. Officials have been directed to complete the transition in a structured manner within the next 100 days, ensuring continuity of operations. Post-takeover, the government will frame new operations and maintenance plans for the metro network.
The Telangana government is progressing with its plan to take over the Hyderabad Metro Rail project from Larsen & Toubro, with the process expected to be completed by March 2026. The timeline was reviewed in a recent high-level meeting chaired by Chief Secretary K Ramakrishna Rao, where officials were asked to ensure that the transition is carried out smoothly and strictly in line with agreed terms. Advertisement
The takeover involves the state purchasing L&T's equity stake in the project for a one-time payment of INR 2,000 crore. In addition, the government will take over the project's outstanding debt, estimated at around INR 13,000 crore. L&T currently holds close to 90% equity in the metro project, which spans nearly 70 km across Hyderabad and was implemented under a public-private partnership model.
Officials have been instructed to complete key steps of the takeover within the next 100 days. IDBI Capital, appointed as the transaction advisor, has been asked to submit its report at the earliest to facilitate timely closure. L&T has also been requested to extend full cooperation during the transition to avoid operational or legal disruptions.
Following the takeover, Hyderabad Metro Rail Limited will continue as the implementing agency. Its managing director has been directed to prepare detailed proposals for the future operations and maintenance of the metro system under government control. These plans are expected to address service continuity, cost management, and long-term sustainability of the network.
The decision to take over the project comes after L&T conveyed its inability to continue operating the metro under existing conditions. The state government views the move as necessary to stabilise the project financially and align future expansions with broader urban transport planning in Hyderabad.
Source PTI
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