The Telangana government has finalized a deal to take full control of the Hyderabad Metro Rail’s first phase. With mounting financial challenges, L&T has stepped back from operations. Under the agreement, the state will assume ₹13,000 crore debt and provide ₹2,100 crore cash settlement, ensuring continued metro services for lakhs of commuters.
Introduction to Telangana Government Takeover of Hyderabad Metro Rail
In a landmark decision, the Telangana government takeover of Hyderabad Metro Rail has been confirmed. Chief Minister Revanth Reddy reached an agreement with L&T’s CMD to acquire the first phase of the metro project. This strategic move includes assuming L&T’s ₹13,000 crore debt and paying an additional ₹2,100 crore in cash compensation.
Key Highlights of the Metro Rail Takeover
- Government acquisition of Hyderabad Metro Rail Phase 1 from L&T.
- ₹13,000 crore debt takeover by the Telangana government.
- ₹2,100 crore cash settlement offered to L&T.
- Metro Phase 1 constructed under public-private partnership at ₹22,000 crore.
- Covers 69 km across three corridors with daily ridership of around 4 lakh passengers.
Why L&T Exited the Hyderabad Metro Rail Project
L&T recently revealed that declining passenger numbers and rising operational costs had made the project financially unsustainable. Despite being one of India’s largest metro projects under a PPP model, revenue losses pushed the company to exit, paving the way for a Telangana government takeover of Hyderabad Metro Rail operations.
Impact on Hyderabad’s Metro Commuters
The takeover ensures that daily metro services will continue without disruption. With government control, there is an expectation of improved infrastructure investment, better passenger services, and affordable ticket pricing. Experts also note that state ownership could bring stronger accountability and long-term sustainability to Hyderabad’s urban transportExpert Views on
Urban transport analysts suggest that the Telangana government takeover of Hyderabad Metro Rail may prove beneficial for the city’s growing population. With over 10 million residents, Hyderabad requires a robust and government-supported metro system to manage urban mobility effectively.
FAQs on Hyderabad Metro Rail Takeover
Q1. Why did L&T exit the Hyderabad Metro project?
L&T cited declining ridership and unsustainable operational costs as primary reasons for its exit.
Q2. How much is the Telangana government paying L&T?
The government is taking over ₹13,000 crore in debt and paying ₹2,100 crore in cash compensation.
Q3. Will metro services be affected by the takeover?
No, services will continue uninterrupted. The takeover aims to stabilize operations and improve efficiency.
Conclusion on Telangana Government Takeover of Hyderabad Metro Rail
The Telangana government takeover of Hyderabad Metro Rail marks a major shift in urban transport governance. By assuming L&T’s debt and responsibilities, the state has taken a decisive step to secure metro operations for millions of commuters. This move is expected to strengthen Hyderabad’s transport infrastructure and ensure long-term stability.
Also Read: Andhra Pradesh IT Investment Opportunities 2025: Nara Lokesh Promises 5 Lakh Jobs