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The Telangana government has signed a share purchase agreement to acquire 100% equity in L&T Metro Rail (Hyderabad) Ltd for INR 1,461.47 crore, formally taking over Hyderabad Metro Rail Phase I. The transaction, executed through Hyderabad Metro Rail Limited, includes refinancing of outstanding debt of INR 13,538.53 crore with a state guarantee. The metro network spans 69 km across three corridors and serves an average daily ridership of 4.5 lakh passengers. The acquisition is aimed at aligning Phase I operations with the proposed Phase II expansion to enable integrated planning and execution.
The Telangana government has entered into a share purchase agreement with Larsen & Toubro to acquire 100% equity in L&T Metro Rail (Hyderabad) Ltd (LTMRHL) for INR 1,461.47 crore in the past week, formally taking over Hyderabad Metro Rail Phase I through Hyderabad Metro Rail Limited. Advertisement
The agreement was signed by Sarfaraz Ahmad, managing director of Hyderabad Metro Rail Limited, along with representatives from L&T Ltd and LTMRHL. Senior state officials, including Chief Secretary K Ramakrishna Rao and Special Chief Secretary Jayesh Ranjan, were present at the signing.
As part of the transaction, the outstanding debt of LTMRHL, amounting to INR 13,538.53 crore as of the end of April 2026, will be refinanced. The refinancing will be supported by a guarantee from the Government of Telangana, replacing the earlier guarantees provided by Larsen & Toubro.
L&T Metro Rail (Hyderabad) Limited has been operating Phase I of the Hyderabad Metro since November 2017. The network spans three corridors with a total length of 69 km and currently serves an average daily ridership of approximately 4.5 lakh passengers. Since commencement, the system has recorded around 86 crore passenger trips.
The acquisition is expected to facilitate closer coordination between the operational Phase I network and the proposed Phase II expansion. According to the state government, this alignment is intended to support integrated planning, execution, and service delivery across the metro network.
Earlier in the day, Larsen & Toubro chairman and managing director SN Subrahmanyan met Chief Minister A Revanth Reddy in connection with the transaction.
The takeover reflects a shift in project ownership structure, with the state assuming direct control of metro operations and associated liabilities. It also highlights evolving approaches to managing large-scale urban transport infrastructure, particularly where financial restructuring and long-term integration of transit networks are involved.
Source - PTI
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