Telangana has initiated one of the most significant public infrastructure transitions in its history, the takeover of the 69-kilometre Hyderabad Metro Rail Phase-I network from Larsen & Toubro (L&T). Valued at nearly ₹15,000 crore, the move represents one of the largest acquisitions ever undertaken by an Indian state government.

Scheduled to come into effect from April, the transition aims to bring the metro system under direct public ownership while ensuring uninterrupted services for lakhs of daily commuters.

Managing a Smooth and Strategic Transition

The takeover process is being carefully structured around three priorities: financial restructuring, transfer of assets and liabilities, and continuity of metro operations.

The State Cabinet has approved the acquisition of 100% equity stake in the Phase-I project. The transaction includes approximately ₹13,000 crore in existing debt, along with payments toward L&T’s equity investment.

To ensure transparency and efficiency:

• IDBI Capital Markets & Securities has been appointed as transaction adviser for financial and legal due diligence.
• Delhi Metro International Limited (DMIL) will conduct technical assessments and evaluate system performance and operational health.

Sustainable Financing for Long-Term Operations

The State Government is exploring long-tenure financing options through the Indian Railway Finance Corporation (IRFC), enabling access to lower-interest funding compared to existing loans.

Officials indicate that repayment will be supported through both fare revenues and non-fare income streams, ensuring financial sustainability without disrupting ongoing services.

A comprehensive share purchase agreement between L&T and the Telangana Government is expected to formalize the transfer shortly.

Assets, Land and Institutional Oversight

To oversee the acquisition, the government has constituted a high-level committee of senior officials alongside a Cabinet subcommittee on resource mobilisation.

As part of the transition:

• All metro-related assets and liabilities will transfer to the State.
• Government land previously allocated under the concession agreement—including operational areas, depots, and transit-oriented developments—will revert fully to public ownership after completion of the process.

This consolidation is expected to strengthen long-term planning and integrated urban development around metro corridors.

Ensuring Seamless Passenger Services

Operational continuity remains central to the transition strategy. Metro services are currently managed by global transport operator Keolis, which has operated the system since its launch in 2017.

Given its strong operational track record, achieving over 99% punctuality and high passenger satisfaction, the State Government is expected to retain Keolis for operations and maintenance during the transition period.

A New Chapter for Hyderabad’s Mobility Future

The Hyderabad Metro takeover marks more than a change in ownership. It represents a shift toward unified governance, financial stability, and accelerated expansion of mass transit infrastructure.

By bringing the metro network under public control while preserving operational efficiency, Telangana is laying the groundwork for faster network expansion, improved connectivity, and sustainable urban mobility.

As Hyderabad continues to grow, this milestone positions the Metro Rail system as the backbone of a smarter, better-connected metropolitan future.