In a major development for urban transport, the Telangana government has formally taken over operations of the Hyderabad Metro Rail from Larsen & Toubro Limited, marking a significant shift in the ownership and management of one of India’s largest metro networks.
The move follows the state’s earlier decision to bring Hyderabad Metro Rail Phase-I under the control of Hyderabad Metro Rail Limited (HMRL). After several rounds of discussions, a high-level meeting was held at the State Secretariat on April 29, where senior officials and representatives from all parties finalised the transition.
Key attendees included HMRL Chairman and Chief Secretary K. Ramakrishna Rao, Special Chief Secretary Jayesh Ranjan and HMRL Managing Director Sarfaraz Ahmed, along with representatives from L&T and L&T Metro Rail (Hyderabad) Limited (LTMRHL).
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During the meeting, a Share Purchase Agreement (SPA) was signed, under which the Telangana government acquired 100 percent equity shares of LTMRHL for Rs 1,461.47 crore. The agreement was executed by Sarfaraz Ahmed on behalf of HMRL, DK Sen representing L&T and KVB Reddy on behalf of LTMRHL.
As part of the arrangement, the existing debt of Rs 13,538.53 crore on LTMRHL, as of April 30, 2026, will be refinanced under the guarantee of the Telangana government, replacing the earlier financial backing provided by L&T. IDBI Capital acted as the transaction advisor, while legal advisory services were provided by Saraf and Partners.
Operational since November 2017, Hyderabad Metro Rail Phase-I spans approximately 69 kilometers across three corridors and is among the most extensive metro systems in India. The network currently serves around 4.5 lakh passengers daily and has recorded nearly 8.6 billion passenger journeys since its inception, underlining its crucial role in the city’s public transport system.
With full control now vested in the state government, officials expect improved coordination between the existing Phase-I operations and the proposed Phase-II expansion. The integration is anticipated to enhance planning, execution and overall service delivery for commuters.
Ahead of the finalisation of the agreement, L&T Chairman and Managing Director S. N. Subrahmanyan met Chief Minister A. Revanth Reddy what was described as a courtesy meeting, during which key aspects of the transition and future collaboration were discussed.
By Pranab Mondal
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