Hyderabad Metro Rail Phase-I takeover, Phase-II expansion hit roadblock as funding search drags on

Nearly a year after the Telangana government signed an agreement with Larsen & Toubro (L&T) to take over Hyderabad Metro Rail (HMR) Phase I, there is little visible progress on either the buyout process or the proposed Phase II expansion.

The 69.2-km HMR Phase I metro network, built under the Public-Private Partnership (PPP) model across three corridors in Hyderabad, was slated for a government takeover through a one-time settlement with L&T. The initial proposal involved payment of ₹2,100 crore towards L&T’s equity investment and assumption of project debt estimated at around ₹13,000 crore. The figures were subsequently revised following due diligence by consultants - IDBI Capital and DMRC International.