Hyderabad Metro Rail Takeover: Telangana Govt Acquires 100% Stake from L&T

Hyderabad: In a major decision, the Telangana State Government has taken over Hyderabad Metro Rail from Larsen & Toubro (L&T) by acquiring 100% equity shares for ₹1,461.47 crore. The agreement, signed at the State Secretariat on Wednesday, marks the transfer of Phase-I operations to Hyderabad Metro Rail Limited (HMRL). The current status confirms that the share transfer agreement has been completed and the metro is now under state government control.

Share Purchase Agreement Signed at Secretariat

A high-level meeting was held at the State Secretariat involving:

• K. Ramakrishna Rao, HMRL Chairman and Telangana Chief Secretary
• Jayesh Ranjan, Special Chief Secretary (MA&UD)
• Sarfaraz Ahmad, Managing Director, HMRL
• Representatives from Larsen & Toubro Limited (L&T)
• Representatives from L&T Metro Rail (Hyderabad) Limited (LTMRHL)

During the meeting:

• A Share Purchase Agreement (SPA) was signed
• The Telangana Government acquired 100% equity shares of LTMRHL
• Deal value: ₹1,461.47 crore

The agreement was signed by:

• Sarfaraz Ahmad on behalf of HMRL
• D.K. Sen for L&T Ltd.
• K.V.B. Reddy for LTMRHL

Debt Refinancing Plan Announced

As part of the agreement:

• Existing debt of ₹13,538.53 crore (as of April 30, 2026) on LTMRHL
• Will be refinanced with a guarantee from the Telangana Government

Advisory roles:

• IDBI Capital acted as the transaction advisor
• Saraf & Partners provided legal advisory services

Hyderabad Metro Phase-I Operations and Ridership

Since November 2017:

• L&T Metro Rail (Hyderabad) Limited operated Phase-I
• Network covers three corridors spanning 69 km

Ridership data:

• Around 4.5 lakh passengers daily
• Total cumulative ridership: approximately 86 crore trips since inception

Passenger-Centric Development After Takeover

With the takeover:

• Government will integrate Phase-I with proposed Phase-II expansion
• Expected benefits:
  • Better planning
  • Improved execution
  • Enhanced service delivery
  • More reliable and commuter-friendly metro network

Meeting with Chief Minister

Before finalizing the agreement:

• L&T Chairman and Managing Director S.N. Subrahmanyan
• Met Honourable Chief Minister Sri A. Revanth Reddy

During the meeting:

• Several key issues were discussed

The Hyderabad Metro Rail takeover by the Telangana Government, involving 100% share acquisition from L&T for ₹1,461.47 crore, marks a significant shift in urban transport management. With ₹13,538.53 crore debt refinancing, 69 km Phase-I network, and 4.5 lakh daily passengers, the current status confirms the metro is now under state control, aiming for better expansion, planning, and improved passenger services.

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