Hyderabad Metro Rail Phase 1 runs 69 km on three traffic corridors in Hyderabad. | Photo Credit: File Photos
It is curtains for the L&T metro Rail Hyderabad (L & Temr) and the model of the public and private sector partnership (PPP) for phase 1 Hyderabad Metro Rail (HMR), and the state government basically agrees to take over the project.
As part of a one -off settlement, the government will pay 2,100 GBP Crore to invest in capital and will also take over the project debt of approximately £ 13,000, according to official release on Thursday. Development is governed by discussions between Chief Minister A. Revanth Reddy and Chairman of L&T and CEO of SN Subrahmanyan, along with other higher officials to solve problems and prepare a journey for the second phase of the metro project, which is waiting for permission from the Center for the Common Government with the State Government. The takeover process should be carried out in a calibrated and pleasant way, which ensures all legal and legal compliance. The main minister initially called on L&T to participate in the second phase of metro expansion as a stock partner, but the proposal was reduced.
Mr Subrahmanyan also expressed his inability to sign the integration impact between the first and the proposed phase 2 and quoted concerns about the smooth operation of trains, sharing income and cost mechanisms. Instead, L&T offered to sell its entire share in the 1 HMR phase and has effectively transformed it into a state entity. This has led to detailed discussions about finances, asset valuation and debt restructuring.
L&T asked the government to take over its debt of 5,900 GBP for capital value and refer to an additional concession agreement signed by July 22, 2022, according to which the government still owes 2,100 Crore out of 3,000 crore non -level loans. After extensive negotiations, both parties agreed to continue with the settlement and speed up the approval of the HMR phase 2 by the center. The state government has submitted proposals for eight new metro lines according to phase 2a and 2b, which is over 163 km of another network.
The center previously raised concerns about Phase 2, which was carried out by the government agency, while Stage 1 remained a private entity. Before further processing of the proposal, it insisted on a definitive agreement with L&T on operational integration. However, L&T refused to participate in phase 2a and 2b.
Chief Secretary of K. Ramakrishna Rao, advisor (Urban Transport) NVS Reddy, Minister of Finance Sandeep Kumar Sultania, MA and UD Secretary to ilambarithi; HMR MD Sarfaraz Ahmad, chief secretary of CM V. Ushadri, secretary cm K. Manick Raj, advisor L & T cmd DK Dream, L & Tarrh MD & CEO KVB Reddy, added a press release.
Published – September 2025 20:56
