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Telangana takes over Hyderabad metro
Telangana signed a share purchase agreement on April 29, 2026 to acquire LTMRHL from L&T for ₹1,461.47 crore, taking full control of the Hyderabad Metro. On April 30, 2026, L&T announced a separate divestment agreement to exit LTMRHL, with LTMRHL’s debt to be refinanced under the state guarantee. The Hyderabad Metro Phase-I, operational since 2017 across 69 km and serving about 4.5 lakh passengers daily, has recorded around 8.6 billion passenger journeys; state control is expected to align Phase-I with the Phase-II expansion.
Why It Matters
This marks a major shift of control over a key urban infrastructure asset from a private concessionaire to the state, with potential implications for financing and expansion of the Hyderabad Metro.
Timeline
4 Events
Telangana government completes acquisition and debt refinancing; Phase-I status and future expansion
April 30, 2026
The Telangana Government acquired 100% equity shares of LTMRHL for ₹1,461.47 crore. The existing debt of ₹13,538.53 crore on LTMRHL, as of April 30, would be refinanced under the Telangana government’s guarantee, replacing the earlier backing provided by L&T. IDBI Capital acted as transaction advisor, and Saraf & Partners provided legal advisory. The Hyderabad Metro Rail Phase-I has been operational since November 2017 and spans approximately 69 kilometres across three corridors, with about 4.5 lakh passengers daily and nearly 8.6 billion passenger journeys since inception. With state control, better coordination is expected between Phase-I operations and the proposed Phase-II expansion.
L&T divestment agreement with Telangana government
April 30, 2026
In a separate statement on Thursday, L&T said it had signed an agreement with the Telangana government seeking to divest its entire stake in LTMRHL.
Telangana signs share purchase agreement to acquire LTMRHL
April 29, 2026
The Telangana government signed a share purchase agreement with Larsen & Toubro and LTMRHL for acquisition of 100% equity shares of LTMRHL at an equity value of ₹1,461.47 crore. The agreement was signed by HMRL managing director Sarfaraz Ahmad, L&T advisor (development projects) D K Sen, and LTMRHL managing director K V B Reddy.
Hyderabad Metro Rail Phase-I operational
November 2017
The Hyderabad Metro Rail Phase-I became operational in November 2017 and was managed by L&T Metro Rail (Hyderabad) Limited. The Phase-I network spans approximately 69 kilometres across three corridors.