Telangana Government to Take Over Hyderabad Metro Rail Phase 1 from L&T.

The Telangana government has given in-principle approval to take over Phase-I of the Hyderabad Metro Rail project from Larsen & Toubro (L&T). The takeover will include assuming the project’s ₹13,000 crore debt and paying ₹2,000 crore to L&T as a one-time settlement for its equity investment in L&T Metro Rail Hyderabad Ltd (LTMRHL).

During a high-level meeting on Thursday, officials from the state government and senior management of L&T agreed to collaborate on finalizing the terms in a manner compliant with all legal and statutory requirements, sources said.

Earlier in July, when the Telangana government invited L&T to participate in the Phase-II expansion, the company expressed its inability to continue due to mounting losses and offered to sell its 90 percent stake in the project. This paved the way for the government’s decision to take over Phase-I operations.