Telangana: In a landmark shift for urban transport in India, the Telangana government has officially taken complete ownership of the Hyderabad Metro Rail Phase-I project, acquiring it from Larsen & Toubro (L&T) in a deal valued at ₹1,461.47 crore. The move effectively ends one of the country’s most prominent public-private partnership (PPP) metro ventures and ushers in a new phase of state-led control and expansion for the city’s rapid transit system.
The transaction was carried out through a share purchase agreement, under which the government took over 100% equity in L&T Metro Rail (Hyderabad) Limited (LTMRHL). This transfer places the entire operational and financial responsibility of the metro network under Hyderabad Metro Rail Limited (HMRL). With this, L&T has made a complete exit from the project it once built and operated.
While the equity value of the deal stands at ₹1,461 crore, the broader financial picture is far larger. The state has also assumed substantial debt liabilities estimated at nearly ₹13,500 crore, taking the overall value of the metro system close to ₹15,000 crore. Officials indicate that this debt will now be refinanced with state backing, a move expected to stabilize the project financially and reduce long-term repayment pressure.
The takeover comes after years of financial strain under the PPP model. Despite being one of India’s largest metro rail systems, the Hyderabad Metro faced rising operational costs and heavy debt servicing burdens, which impacted profitability. The situation eventually led to prolonged negotiations between L&T and the Telangana government, culminating in this full acquisition.
Another major factor behind the decision was the need for unified control to move forward with expansion. The central government had emphasized that future approvals for Phase-II development would require a single controlling authority, making the takeover a strategic necessity for growth.
With full ownership now secured, the government is preparing to accelerate metro expansion across the city. Plans include extending connectivity to key zones such as Shamshabad, which houses the international airport, and upcoming urban clusters like Bharat Future City. The proposed Phase-II project is expected to span around 162 kilometers, significantly enhancing urban mobility and reducing congestion in Hyderabad.
Since its launch in 2017, the Hyderabad Metro has become a critical part of the city’s transport ecosystem, recording over 86 crore passenger journeys. It has helped ease traffic congestion and provided a faster, more reliable commuting option for lakhs of daily passengers. Authorities have assured that services will continue seamlessly, with no disruption expected during the transition of ownership.
Experts believe that bringing the metro under complete government control could lead to better fare regulation, improved service integration, and faster decision-making. It may also enable closer coordination with other public transport systems such as buses and suburban rail, creating a more unified mobility network. For L&T, the exit marks a strategic business decision. The company is likely to redirect resources toward its core engineering and infrastructure operations, stepping away from a capital-intensive and long-gestation urban transport project.
Telangana Chief Minister A. Revanth Reddy has described the acquisition as being in the “larger public interest,” highlighting the government’s commitment to strengthening infrastructure in a rapidly growing metropolitan region.
As Hyderabad continues to expand as a global technology and business hub, this takeover is expected to play a defining role in shaping its future. More than just a financial deal, the move represents a significant policy shift in how large-scale urban transit systems are managed in India, potentially setting a precedent for other cities facing similar challenges.
