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The Telangana government has taken a major step to complete the takeover of the Hyderabad Metro Rail Phase I project from L&T Metro Rail Hyderabad. On Friday, it issued official orders to finalise all technical and financial arrangements needed for the process. This move shows the government's clear plan to
bring the city's biggest urban transport system fully under its control.
Hyderabad Metro Takeover
The municipal administration department released a government order allowing Hyderabad Metro Rail Limited (HMRL) to move ahead with a share purchase agreement. Through this, HMRL will acquire 100% ownership of L&T's stake in L&T Metro Rail Limited. The proposal was reviewed and approved by a cabinet sub-committee focused on resource mobilisation. The order also approved a financial arrangement with the Indian Railway Finance Corporation (IRFC). The metro project currently has a debt of about ₹13,615 crore as of April 30, 2026. The state government will guarantee this loan, which will be repaid over 20 years.
Signing of Purchase Agreement
HMRL's managing director has been authorised to sign the share purchase agreement with L&T once the cabinet gives its final approval. Moreover, the principal secretary of the finance department, or another authorised official, will handle the signing of all required documents to complete the deal. The government has also approved an equity investment of ₹1,385 crore into HMRL through the Hyderabad Metropolitan Development Authority (HMDA). Since this amount is below ₹2,000 crore, there is no need to seek approval from the Competition Commission of India.
This takeover is an important step in improving Hyderabad's urban transport system. By gaining full ownership, the government aims to manage operations better, improve financial control, and speed up future metro expansion. It also reflects the government's long-term focus on strengthening public transport and making the metro a key part of the city's mobility network.
