Hyderabad Metro Phase-1 Gets Rs 13,600 Crore Refinancing from IRFC After Telangana Government Takeover

Hyderabad/New Delhi: In a major boost to urban transport infrastructure, the Telangana government has secured Rs 13,600 crore working capital refinancing for the Hyderabad Metro Rail Phase-1 project through Indian Railway Finance Corporation Limited (IRFC). The refinancing agreement was signed in Delhi on Monday between IRFC, L&T Metro Rail (Hyderabad) Limited and Hyderabad Metro Rail Limited (HMRL) following the Telangana government’s takeover of the metro project from Larsen & Toubro.

Rs 13,600 Crore Hyderabad Metro Refinancing Agreement Signed in Delhi

The agreement documents were signed during a programme held in Delhi on Monday.

The event was attended by IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K Ramakrishna Rao.

Speaking on the occasion, K. Ramakrishna Rao said the Telangana government under the leadership of Chief Minister A Revanth Reddy is committed to developing an efficient, sustainable and people-friendly public transport system in Hyderabad.

Hyderabad Metro Expansion Essential for Rapid City Growth

The Chief Secretary stated that Hyderabad is emerging as a major center for the country’s economic growth and metro connectivity expansion is essential to match the city’s rapid development.

He said the metro is playing a key role in reducing traffic congestion and improving the quality of urban life.

According to him, the Rs 13,600 crore refinancing would provide major financial relief to the Hyderabad Metro Rail project and strengthen its long-term financial stability.

He added that the refinancing would reduce the current debt burden and support future metro expansion plans.

Telangana Government Thanks IRFC, L&T and HMRL Teams

K. Ramakrishna Rao thanked the Central government, IRFC, L&T team, HMRL and all related officials for successfully completing the refinancing process.

The programme was also attended by:

• Sarfaraz Ahmad
• Shivendra Pratap
• Advaith Kumar Singh
• K V B Reddy
• A V R Srinivasa Sharma

Senior officials from IRFC and other departments also participated in the programme.

Telangana Government Takes Over Hyderabad Metro From L&T

The refinancing came into effect after the Telangana government, through HMRL, acquired 100 percent stake in L&T Metro Rail (Hyderabad) Limited from Larsen & Toubro Limited.

Following the acquisition, Hyderabad Metro became a fully government-owned strategic public transport asset.

The Rs 13,600 crore facility will be used for refinancing existing debt liabilities, including:

• Non-convertible debentures
• Commercial papers
• Working capital refinancing

Officials said the refinancing would provide an orderly exit to existing lenders and significantly improve the project’s financial stability.

Hyderabad Metro Loan Structured for 20 Years

The loan has been structured for a period of 20 years with quarterly repayment mechanisms.

High-interest loans are being replaced with lower-cost long-term rupee financing.

The transaction is backed by strong credit enhancement systems, including:

• Telangana government’s unconditional and irrevocable payment guarantee
• State government guarantee
• RBI-supported direct debit mandate

Hyderabad Metro Phase-1 Covers 69.2 Kilometres With 57 Stations

Hyderabad Metro Rail Phase-1 is one of the country’s largest metro projects developed under the public-private partnership model.

The project includes:

• 69.2 kilometres network length
• Three corridors
• 57 stations

Currently, more than 5 lakh passengers use the metro network every day.

Refinancing to Boost Future Hyderabad Metro Expansion Plans

Officials said the refinancing would strengthen the financial capacity of the Hyderabad Metro project and accelerate expansion plans.

The expansion plans include:

• New corridors
• Better connectivity to developing areas
• Improved last-mile connectivity

The Telangana government described the agreement as a major milestone in building a strong financial foundation for future Hyderabad Metro expansion projects.

The Telangana government has secured Rs 13,600 crore refinancing from IRFC for Hyderabad Metro Rail Phase-1 after taking over 100 percent stake in L&T Metro Rail (Hyderabad) Limited through HMRL. The agreement signed in Delhi aims to improve the metro project’s long-term financial stability, reduce debt burden, and support future expansion plans. Hyderabad Metro, which operates across 69.2 kilometres with 57 stations and serves over 5 lakh passengers daily, is now a fully government-owned public transport asset.

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