Telangana Government Acquires Hyderabad Metro Phase I from Larsen & Toubro in ₹1,461 Cr Deal

Hyderabad, April 30, 2026: The Telangana government has taken full ownership of Hyderabad Metro Rail Phase I after signing a Share Purchase Agreement with Larsen & Toubro (L&T) to acquire 100% equity in L&T Metro Rail (Hyderabad) Limited (LTMRHL).

₹1,461 Crore Equity Deal

The acquisition has been completed at an equity value of ₹1,461.47 crore, marking a major shift in ownership of one of India’s largest metro rail networks.

The agreement was signed by officials of Hyderabad Metro Rail Limited (HMRL) and L&T in the presence of senior state government representatives.

Debt to Be Refinanced

As part of the deal:

• Total debt of ₹13,538.53 crore will be refinanced
• Debt guarantee will now be backed by the Telangana government

This move is expected to improve financial flexibility and streamline future expansion plans.

About Hyderabad Metro Phase I

The metro network:

• Covers 69 km across three corridors
• Has been operational since 2017
• Serves around 4.5 lakh daily passengers
• Has recorded over 86 crore passenger trips

Strategic Importance

The acquisition is expected to enable better coordination between existing Phase I operations and upcoming Phase II expansion.

Officials noted that unified control will help in:

• Seamless planning and execution
• Improved service delivery
• Faster infrastructure development

Bigger Picture

The move reflects a growing trend of governments taking strategic control of key urban infrastructure assets to ensure long-term sustainability and integration.