Hyderabad Metro Rail Takeover Clears Path for Expansion

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Hyderabad: The state government will submit the Hyderabad Metro Rail (HMR) takeover agreement, signed with Larsen&Toubro (L&T) recently, to the Centre next week and seek faster approvals for the expansion of the network under Phase-II (Part-A and Part-B), sources said.

The detailed project reports (DPRs) for the expansion have been pending with the Centre for nearly a year, as it had imposed the condition that the government either take over Phase-I operations from L&T or ensure L&T’s participation in the expansion project. With L&T refusing to be part of the expansion or integration plans and instead offering to exit, the state government completed the takeover of Phase-I on April 30.

Chief Minister A. Revanth Reddy has directed HMR officials to visit Delhi next week to meet officials of the Union urban affairs ministry and submit the takeover agreement documents. The CM is also expected to visit Delhi to meet Union urban affairs minister Manohar Lal Khattar to press for early approvals, especially after the state government cleared all hurdles flagged by the Centre.

The Cabinet had approved the Metro Rail expansion proposed in partnership with the Centre in October 2024, followed by approval of DPRs for Phase-II in May 2025. The Centre had sought clarity on how Phase-I, operated by L&T, would be integrated with Phase-II to be developed jointly by the state government and the Centre. It insisted on a formal agreement with L&T for integration. With L&T declining to participate, the state proceeded to acquire the project.

On April 30, the state government formally acquired 100 per cent equity in L&T Metro Rail (Hyderabad) Limited (LTMRHL) for `1,461.47 crore, also taking over responsibility for refinancing the company’s debt of `13,538.53 crore. This move is expected to resolve all pending issues and enable the Centre to grant approvals for Phase-II.

Hyderabad Metro Phase-1 currently records an average daily ridership of about 4.5 lakh passengers. The state government taking full control of Phase-I would ensure better integration, planning, execution, and service delivery for the proposed Phase-II network, officials believe. It will pave the way for a more comprehensive and commuter-friendly urban transit system in the city.

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