HYDERABAD: The government on Friday issued an order (GO) approving the acquisition of 100 per cent equity stake held by L&T in L&T Metro Rail (Hyderabad) Limited (LTMRHL) as part of the Hyderabad Metro Rail Project Phase-I takeover by Hyderabad Metro Rail Limited (HMRL).
The order follows recommendations of the Cabinet sub-committee (CSC) made at its meeting on April 10, 2026, based on proposals submitted by the Managing Director of HMRL. It also permits availing a loan from the Indian Railway Finance Corporation (IRFC), execution of agreements, and related actions.
The GO states that the interest-free loan of ₹900 crore, with a net present value of ₹366.92 crore as on April 30, 2026, will not be deducted from the purchase consideration of ₹15,000 crore.
It further specifies that no indemnity will be obtained from L&T towards property tax dues payable to GHMC, citing Clause 43.3 of the Concession Agreement, under which the government is the owner of the project site.
The government will obtain specific indemnities from L&T on identified liabilities, including stamp duty dues of ₹123.95 crore to the stamps and registration department, labour cess of ₹163.74 crore to the labour department, ₹15.38 crore related to tariff order implementation to TGSPDCL, and advertisement tax dues of ₹75.12 crore to GHMC.
The order also allows LTMRHL to grant a specific power of attorney to L&T to represent the company in pending court cases. It adds that change-in-law claims, including viability gap funding (VGF), will continue with LTMRHL, with further action to be taken upon finalisation by the Governments of Telangana and India.
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