Telangana takes over HMR Phase 1 from L&T
Paves way for phase-2 expansion, SPA signed after Revanth’s meeting with L&T chairman
Hyderabad: The Telangana government on Wednesday formally completed the takeover of Hyderabad Metro Rail from Larsen & Toubro Limited by signing a share purchase agreement (SPA) to acquire 100 per cent equity shares of L&T Metro Rail (Hyderabad) Limited (LTMRHL) at an equity value of ₹1,461.47 crore.
The agreement was signed at the Secretariat in the presence of Chief Secretary and chairman of Hyderabad Metro Rail Limited (HMRL) K. Ramakrishna Rao, Special Chief Secretary (MA&UD) Jayesh Ranjan, HMRL managing director Sarfaraz Ahmad, and senior management representatives of L&T and LTMRHL.
The SPA was signed following a meeting earlier in the day between Chief Minister A. Revanth Reddy and L&T chairman S.N. Subrahmanyan at ICCC, Banjara Hills, where modalities for completing the takeover were discussed.
With this deal, the Hyderabad metro rail project, which was initiated in 2010 under the Public-Private Partnership (PPP) model has now come fully under the control of the Telangana government. Metro services were originally launched by L&T in November 2017.
On behalf of HMRL, managing director Sarfaraz Ahmad signed the agreement, while D.K. Sen signed for L&T Ltd and K.V.B. Reddy for LTMRHL. As part of the deal, the existing debt of LTMRHL amounting to ₹13,538.53 crore as of April 30, 2026 — earlier guaranteed by L&T — will now be refinanced with a guarantee from the Telangana government. The transaction advisor for the deal was IDBI Capital, while legal advisory services were provided by Saraf & Partners.
The Telangana government had earlier decided to take over Phase I of the metro rail through HMRL and had been holding discussions with L&T over the past few days to finalise the process. Officials including K. Ramakrishna Rao, Jayesh Ranjan, and Sarfaraz Ahmad met L&T and LTMRHL representatives at the Secretariat on Wednesday, culminating in the signing of the SPA and transfer of ownership.
L&T Metro Rail (Hyderabad) Limited has been operating Phase I of the project since November 2017 across three corridors spanning a total network length of 69 km. The system currently handles an average daily ridership of around 4.5 lakh passengers and has recorded nearly 86 crore passenger trips since inception.
With the acquisition of Phase I, the state government aims to expand Metro Rail under phase-2 on four sides of the city with the partnership of Centre. The Phase-1 takeover will ensure better integration with the proposed Phase II network. Officials said the unified control will facilitate improved coordination in planning, execution, and service delivery, ultimately leading to a more cohesive, reliable, and commuter-friendly metro rail network for Hyderabad in the coming years.
