Telangana Government Completes Acquisition of Hyderabad Metro Rail from L&T

The Telangana government has finalized its acquisition of Hyderabad Metro Rail, taking complete ownership of the mass transit system from infrastructure giant Larsen & Toubro.

Under the Share Purchase Agreement signed by the parties, the state government secured 100% equity stake in L&T Metro Rail (Hyderabad) Limited for ₹1,461.47 crore. State officials indicated that the move would enhance operational planning, facilitate network expansion, and elevate the quality of services provided to passengers.

The takeover represents the culmination of an earlier initiative to consolidate Phase-I operations under Hyderabad Metro Rail Limited (HMRL). Negotiations between the government and L&T preceded the finalization of the transaction terms.

The formal agreement was executed at the State Secretariat in the presence of senior officials K. Ramakrishna Rao, Jayesh Ranjan, and HMRL Managing Director Sarfaraz Ahmad. Sarfaraz Ahmad signed on behalf of HMRL, D.K. Sen for L&T, and K.V.B. Reddy for L&T Metro Rail (Hyderabad) Limited. Transaction advisory services were provided by IDBI Capital, with legal guidance from Saraf & Partners.

A significant component of the agreement addresses the system's existing debt obligations. The state government will assume responsibility for refinancing ₹13,538.53 crore in liabilities, backed by state guarantees. This financial restructuring is designed to ensure sustainable operations over the long term.

The Hyderabad Metro has been operational since November 2017, with L&T managing Phase-I across three corridors totalling 69 kilometres. The network currently carries approximately 4.5 lakh passengers daily, with cumulative ridership exceeding 86 crore trips since inception. The metro has become an integral component of the city's urban transportation infrastructure.

The government's acquisition paves the way for integrating Phase-I with the planned Phase-II expansion. Officials believe this unified governance structure will streamline project execution and enhance service quality for commuters.

Prior to signing the agreement, L&T Chairman S. N. Subrahmanyan held discussions with Chief Minister A. Revanth Reddy to address critical aspects of the transition process.

State authorities have stated that the takeover will establish a more dependable and passenger-centric metro system. The government has committed to strengthening infrastructure and improving connectivity across the network.