Hyderabad: Telangana government on Wednesday overtook phase-1 of Hyderabad Metro Rail Limited (HMRL) from Larsen and Toubro (L&T), paving the way for the govt’s ambitions to extend the metro rail towards Shamshabad and other parts of the city. The project is now a joint venture between the state government and the Centre.
The state government acquired 100 percent of shares from L&T MRHL at an equity value of Rs 1,461.47 crore.
HMRL Chairman and State Chief Secretary K. Ramakrishna Rao, Special Chief Secretary of the Metropolitan Area Urban Development Department Jayesh Ranjan, HMRL MD Sarfaraz Ahmed, L&T Metro Rail (Hyderabad) Limited MD KVB Reddy, L&T representative D.K. Sen, and Government Advisor on Urban Transport and former Metro Rail MD NVS Reddy met at the Secretariat on Wednesday.
A share purchase agreement was concluded among HMRL, L&T, and L&TMRHL and the agreement was signed by Sarfaraz Ahmed, D.K. Sen, and KVB Reddy.
The debt amounting to Rs 13,538.53 crore (as of April 30, 2026) currently held by L&TMRHL, backed by an L&T guarantee – will be refinanced under a guarantee provided by the Government of Telangana. The equity value and the debt takes total value of the takeover project to Rs 15,000 crore.
State government officials said that they are waiting for phase-2 approvals from the Centre. The Centre reportedly insisted on a definitive agreement for integration between phase-1 and phase-2.
This takeover will facilitate the expansion of phase-2 by 160 km. Proposals of expansion in phase-2 covering 76.4 km initially and 86.1 km later, have been submitted to the Centre.
Hyderabad Metro origins:
L&T operated Phase-I of the Hyderabad Metro Rail, a network spanning 69 kilometers across three corridors, which was launched in Hyderabad city in November 2017. Approximately 450,000 passengers utilize this metro service daily.