Published Apr 30, 2026 | 1:57 PM ⚊ Updated Apr 30, 2026 | 1:57 PM
Hyderabad Metro. Credit: Wikimedia Commons
Synopsis: The Telangana government has formally taken over Hyderabad Metro Rail from L&T, acquiring 100% equity in LTMRHL for ₹1,461.47 crore and assuming ₹13,538.53 crore debt. The 69-km Phase-I network, operational since 2017, serves 4.5 lakh daily commuters. Officials expect smoother coordination with Phase-II expansion, aiming to strengthen planning, service delivery, and integration of Hyderabad’s transport system.
The Telangana State Government has formally taken over the Hyderabad Metro Rail, which was until now operated by L&T. The move marks a critical shift in the ownership and management of one of India’s largest metro rail networks.
The government had earlier decided to bring Hyderabad Metro Rail Phase-I under the control of Hyderabad Metro Rail Limited (HMRL). In line with this decision, discussions were held over the past few days with L&T to finalize the transition.
At a high-level meeting held at the State Secretariat on Wednesday, 29 April, key officials including HMRL Chairman and Chief Secretary K. Ramakrishna Rao, Special Chief Secretary for Municipal Administration and Urban Development Jayesh Ranjan, and HMRL Managing Director Sarfaraz Ahmed participated. Representatives from Larsen & Toubro Limited and L&T Metro Rail (Hyderabad) Limited (LTMRHL) were also present.
During the meeting, a Share Purchase Agreement (SPA) was signed between the parties. As per the agreement, the Telangana Government has acquired 100 percent equity shares of LTMRHL for a total value of Rs 1,461.47 crore. The agreement was signed by Sarfaraz Ahmed on behalf of HMRL, DK Sen representing L&T Limited, and KVB Reddy on behalf of LTMRHL.
Also Read: Telangana’s takeover of Hyderabad Metro — A visionary step or a high stakes political gamble?
As part of the deal, the existing debt of Rs 13,538.53 crore on LTMRHL, as of 30 April, 2026, will be refinanced under the guarantee of the Telangana Government, replacing the earlier backing provided by L&T. IDBI Capital acted as the transaction advisor for the deal, while legal advisory services were provided by Saraf & Partners.
The Hyderabad Metro Rail Phase-I has been operational since November 2017, managed by L&T Metro Rail (Hyderabad) Limited. The network spans approximately 69 kilometers across three corridors, making it one of the most extensive metro systems in the country.
Currently, the metro system caters to around 4.5 lakh passengers daily. Since its inception, it has recorded nearly 8.6 billion passenger journeys, reflecting its critical role in the city’s public transport ecosystem.
With the state government now taking full control, better coordination is expected between the existing Phase-I operations and the proposed Phase-II expansion. Officials believe that this integration will streamline planning, execution, and service delivery, ultimately benefiting commuters.
Prior to the finalisation of the agreement, L&T Chairman and Managing Director SN Subrahmanyan met Telangana Chief Minister A Revanth Reddy. The meeting was described as a courtesy call, during which several aspects related to the transition and future collaboration were discussed.
