Telangana Govt To Take Over Hyderabad Metro Rail Phase-I

Telangana State Government has agreed in principle to take over the Hyderabad Metro Rail Phase I, which is under Public-Private Partnership. As part of the one-time settlement, the government will pay 2,100 crore rupees to L&T towards its equity investment and also take over the project’s debt of approximately 13,000 crore rupees.

An official release yesterday stated that the development follows discussions between Chief Minister A. Revanth Reddy and L&T Chairman & Managing Director S.N. Subrahmanyan, and with other senior officials, to resolve issues and pave the way for the second phase



of the metro project. The Metro’s Second phase is awaiting clearance from the Centre for a joint venture with the State government.

The takeover process is to be carried out in a calibrated and mutually agreeable manner, ensuring all legal and statutory compliances. Initially, the Chief Minister had invited L&T to participate in the metro expansion second phase as an equity partner, but the proposal was declined. The L&T expressed inability to sign an integration pact between phase one and the proposed phase 2, citing concerns over seamless train operations, revenue sharing, and cost mechanisms.