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Informist, Tuesday, Dec. 16, 2025

 

HYDERABAD – The Telangana government plans to complete the takeover of Hyderabad metro rail project from L&T Metro Rail (Hyderabad) Ltd. by March. In a review meeting on Tuesday, Telangana Chief Secretary K. Ramakrishna Rao asked transaction advisor IDBI Capital to submit its report on the takeover process, a state government release said.

 

The state government has asked Larsen & Toubro Ltd., the parent company of L&T Metro Rail (Hyderabad), to cooperate with IDBI Capital to complete the takeover process smoothly within the stipulated time.

 

The Telangana government has expressed its willingness to take over the 72 kilometre Hyderabad Metro Rail Phase-1 project from L&T arm, marking a shift away from the public–private partnership model that has struggled to achieve financial viability. The proposal involves the state assuming the project's outstanding debt, estimated at around INR 120 billion, along with a cash settlement of roughly INR 20 billion payable to acquire L&T's equity stake and bring the asset fully under government control.

 

As the state government is planning to develop new metro lines connecting various busy corridors of the city, officials see the takeover as a prerequisite for unlocking the long-delayed Phase-2 expansion, enabling better coordination with urban transport planning and improving the project's eligibility for central funding and concessional financing.

 

The state is also exploring debt restructuring and refinancing at lower interest rates to ease annual cash-flow pressures, with the broader objective of stabilising operations and creating a sustainable long-term framework for metro expansion in Hyderabad.

 

For the quarter ended September, L&T had reported a consolidated net profit of INR 39.26 billion on a revenue of INR 679.84 billion. On Tuesday, its shares closed 0.7% lower at INR 4,063.80 on the National Stock Exchange.   End

 

Reported by Narayana Krishna

Edited by Ashish Shirke

 

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