Telangana's Strategic Takeover: Hyderabad Metro Rail's New Course

The Telangana government has decided to acquire Phase-I of the Hyderabad Metro Rail project from infrastructure giant L&T Group by investing Rs 2,000 crore for the concessionaire's equity. This strategic move, agreed upon in principle, involves also assuming the company's substantial debt of Rs 13,000 crore.

Following negotiations led by Chief Minister A Revanth Reddy, the decision aims to overcome operational challenges and losses while expediting approval processes for the next phase of expansion. L&T, holding 90 percent equity, initiated the sale amid financial struggles, declining revenues, and increased losses.

The decision reflects the government's commitment to ensuring the project's progression while addressing financial hurdles. A consortium of banks, led by the State Bank of India, will continue to support the project, though L&T has refrained from participating in further expansion phases as a public-private partnership partner.