Hyderabad: The Telangana Legislative Assembly on Saturday passed a resolution endorsing the state government’s decision to take over Phase-1 of the Hyderabad Metro Rail Project from infra major L&T.
Chief Minister A Revanth Reddy, who moved the resolution, said Phase-1 of the project is spread over 69 km and the state government submitted proposals to the Centre to develop Phase – II A and Phase-II B of the project in 76.4 km and 86.1 km respectively.
The state government has taken into consideration the technical, legal and administrative problems being encountered to take up Phase-II A and Phase-II B with the joint partnership of Central and state governments when Phase-I is in private management, he said.
The state government has decided to take over Phase-I from L&T through the Hyderabad Metro Rail Ltd (HMRL) so as to address the issues raised by the Centre, he said.
The chief minister sought the endorsement of the House for the state government’s decision to take charge of the Phase-I of the project. The state government has drawn up plans to improve public transport in Hyderabad and to make the city get international recognition, he said, thanking the members for their unanimous support to the resolution.
Congress MLA Balu Naik, who was in the chair, announced adoption of the resolution by the House. BRS MLA T Harish Rao, who spoke immediately on voting of Demands for Grants for 2026-27, said the views of BRS were not taken. The resolution was not unanimous, he said.
The Telangana government in 2025 agreed to take over Phase-I of Hyderabad Metro Rail project from L&T Group by paying Rs 2,000 crore for the equity in the concessionaire L&T Metro Rail Hyderabad Ltd.
It was agreed that the state government would also take over the company’s debt of Rs 13,000 crore, official sources had said. L&T has about 90 per cent equity in the project.
The infra major had expressed its desire to offload its stake in the Metro Rail project-about 70 km to either the state or central government through a new Special Purpose vehicle (SPV), citing operational and accumulated losses.
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