In a decisive step towards completing the takeover of Hyderabad Metro Rail (phase I) from L&T Metro Rail Hyderabad, the state government on Friday issued formal orders to finalise all technical and financial modalities. The move signals the state's intent to bring the city's largest urban transport project fully under government control.
Government Order Authorises Share Purchase
The municipal administration department issued a Government Order (GO) on Friday, authorising the Hyderabad Metro Rail Limited (HMRL) to proceed with the share purchase agreement to acquire 100% equity stake of L&T in L&T Metro Rail Limited. The cabinet sub-committee on resource mobilisation reviewed the proposals and granted approval for the transaction.
Financial Modalities Cleared
The GO also cleared terms with the Indian Railway Finance Corporation (IRFC) for a debt of ₹13,615 crore (as on April 30, 2026), with the state government providing a guarantee. The loan will be repaid over 20 years. HMRL managing director has been permitted to sign the share purchase agreement with L&T after cabinet approval. The principal secretary (finance) or an authorised officer has been empowered to sign all necessary documents to complete the transaction.
Equity Infusion and Competition Commission Exemption
The government also approved an equity infusion of ₹1,385 crore to HMRL through HMDA. Permission was granted to proceed without reference to the Competition Commission of India, as the equity amount falls below the ₹2,000 crore threshold.
Strategic Implications for Urban Infrastructure
This takeover marks a turning point in Hyderabad's urban infrastructure strategy. By assuming full ownership of the metro rail project, the state government aims to streamline operations, strengthen financial oversight, and accelerate expansion plans. The move also underscores the government's commitment to long-term urban mobility solutions, ensuring that Hyderabad's metro system continues to evolve as a backbone of the city's public transport network.
