Funding snag delays Hyderabad Metro takeover until December
The Telangana government has extended the deadline for the Hyderabad Metro takeover to December 2026 due to financing difficulties. The state is struggling to secure a loan at favorable interest rates after the Indian Railway Finance Corporation withdrew its funding support.
Why it matters
The delay highlights the financial complexities and risks involved in large-scale public-private infrastructure transitions.
The Telangana government and Larsen & Toubro (L&T) have decided to extend the deadline for completing the transfer of ownership of the 69.2-km Hyderabad Metro Rail (HMR) Phase-I project by another three months, pushing it to December 31, 2026.
This is the third extension granted for finalising the Share Purchase Agreement (SPA) since the State government formally announced its decision in May to acquire 100% equity in L&T Metro Rail Hyderabad (L&TMRH) from L&T. The takeover involves a negotiated equity payment of ₹1,462 crore and the assumption of nearly ₹13,560 crore in debt, which was expected to be serviced through a financial institution.
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