Published Apr 26, 2026 | 3:29 PM ⚊ Updated Apr 26, 2026 | 3:29 PM
Hyderabad Metro. Credit: iStock
Synopsis: Telangana will fully acquire Hyderabad Metro Rail Phase-I from L&T Metro Rail by 30 April 2026 in a ₹15,000 crore deal, including ₹13,615 crore debt. The state-backed HMRL will assume ownership, refinance loans via IRFC, retain staff for a year, and appoint top officials to LTMRHL’s board, marking a major shift to public control of the 69‑km network.
The Telangana government has issued orders advancing the full takeover of Hyderabad Metro Rail Phase-I from L&T Metro Rail (Hyderabad) Limited (LTMRHL) by Hyderabad Metro Rail Limited (HMRL), with transaction closing set for 30 April, 2026.
This move, valued at Rs 15,000 crore including debt, marks a pivotal shift towards state ownership of the 69-km network serving millions daily.
The Government Order Ms No. 127, dated 24 April, 2026, greenlights the Share Purchase Agreement (SPA) and related financial mechanisms following Cabinet Sub-Committee recommendations from 10 April.
Key decisions include retaining a Rs 900 crore interest-free loan (NPV Rs 366.92 crore as of April 30) in LTMRHL’s books without deducting it from the purchase price, and securing indemnities from L&T for liabilities like Rs 123.95 crore stamp duty, Rs 163.74 crore labour cess, Rs 15.38 crore TGSPDCL tariff issues, and Rs 75.12 crore GHMC ad tax.
Also Read: Telangana’s takeover of Hyderabad Metro — A visionary step or a high stakes political gamble?
No indemnity is sought for GHMC property tax dues, as the government owns the sites per the concession agreement.
To fund the Rs 13,615 crore debt as of 30 April, HMRL will avail a loan from Indian Railway Finance Corporation (IRFC) under an approved term sheet, with a 20-year repayment from metro revenues.
The state provides a guarantee, Letter of Undertaking, and RBI direct debit mandate, while authorizing tripartite agreements, escrow accounts with IDBI, and HMDA funds of Rs 1,385 crore for equity.
The government will cover Rs 10.47 crore interest on maturing commercial papers post-closing and a Rs 3,810 crore refinancing guarantee.
As many as 115 LTMRHL employees stay for one year at HMRL’s cost (Rs 24.3 crore annually), with seven L&T CXOs advising for six months at L&T’s expense.
HMRL’s MD can adjust staffing, a Transition Services Agreement ensures operations continuity, and L&T receives power of attorney for pending court cases. Change-in-law claims, including Viability Gap Funding (VGF), persist with LTMRHL.
In G.O. Ms No. 128 dated April 25, 2026, the government nominated 10 senior officials to LTMRHL’s board post-acquisition, led by Chief Secretary K. Ramakrishna Rao as Chairman and HMRL MD Sarfaraz Ahmad as Managing Director.
Directors include Special Chief Secretary MA&UD Jayesh Ranjan, Principal Finance Secretary Sandeep Kumar Sultania, DGP B. Shivadhar Reddy, and heads of HMDA, HMWSSB, TGSPDCL. Shares are allotted: one each to seven nominees and the Government of Telangana, with the balance to HMRL.
Financial Snapshot:
Component Amount (Rs Crore)
Total Deal Value 15,000
Debt Refinancing 13,615
Equity from HMDA 1,385
Retained Loan (NPV) 366.92
Employee Retention (Annual) 24.3
Post-Closing Interest 10.47
The 30 April deadline underscores urgency, with MDs of HMRL and Hyderabad Airport Metro Limited being tasked with execution under Special Chief Secretary Jayesh Ranjan’s oversight.
