Hyderabad Metro Comes Under Government Control After Major Buyout
Telangana government takes full control of Hyderabad Metro first phase by acquiring equity from L and T and plans refinancing of debt marking a major shift in urban transport management
- Hyderabad Metro shifts to government control after buyout
- Hyderabad Metro equity acquired from Larsen and Toubro by Telangana
- Hyderabad Metro project to undergo debt refinancing under government
In a significant development for urban transport in Telangana, the Hyderabad Metro Rail first phase has officially come under government control. The state government completed the acquisition of 100 percent equity from Larsen and Toubro in a deal valued at Rs 1461.47 crore, marking the end of private ownership for the project.
The transition was carried out through Hyderabad Metro Rail Limited which had earlier been tasked with taking over the metro operations. After several rounds of discussions with the private operator, the agreement was finalized in a high level meeting held at the state secretariat.
Senior officials including K Ramakrishna Rao, Jayesh Ranjan, and Sarfaraz Ahmed were present during the signing of the share purchase agreement. Representatives from L and T also participated in the process, formalizing the transfer of ownership.
As part of the agreement, the existing debt of Rs 13538.53 crore associated with the metro project will be refinanced with a government backed guarantee. This move is expected to ease financial pressures and ensure smoother long term operations of the metro system.
Advisory support for the transaction was provided by IDBI Capital while legal assistance came from Saraf and Partners. The takeover represents a major policy shift, bringing a critical public transport system fully under state supervision.
With this move, the government aims to improve service delivery, strengthen financial stability, and expand the metro network more effectively in the coming years.
