Hyderabad Metro Takeover Moves Ahead as State Clears Ownership Shift Plan

• Hyderabad Metro takeover approved by state cabinet.
• Private agency to continue Metro operations.
• Hyderabad Metro debt refinancing planned.

The Hyderabad Metro Rail is set to enter a new phase as the Telangana government accelerates steps to take over the project from L and T. After receiving cabinet approval, officials have begun a structured process to transfer Metro assets without triggering legal or financial hurdles.

While ownership will move to the government, commuters are unlikely to notice any immediate changes. Sources indicate that Metro operations and maintenance will continue under a private operator, working under government oversight. The aim is to ensure service stability while ownership shifts hands.

Currently, Metro services are being handled by Keolis, a France based firm engaged by L and T. Its contract runs until November, and officials say the agreement is likely to be extended for another year, as the government is not planning to directly manage daily operations.

The takeover comes amid mounting financial pressure on L and T, which has expressed its inability to continue managing the Metro due to heavy debt. As of December, loans linked to the project stood at nearly 12,965 crore rupees, borrowed from a consortium of banks.

To ease the interest burden, the state plans to refinance the debt through a newly proposed special purpose corporation. The Indian Railway Finance Corporation has reportedly agreed to extend fresh loans, with disbursal expected soon.

Once the transfer is complete, Hyderabad Metro will officially come under government ownership, marking a significant shift in one of India’s largest urban transport projects. The state has set a deadline to complete the takeover within the next few months, signaling urgency and commitment to stabilize the Metro’s future.