The Telangana government has officially taken over Hyderabad Metro Rail Phase I from Larsen & Toubro Limited for a sum of Rs 1,461 crore. This acquisition involved a share purchase agreement with Larsen & Toubro Limited and L&T Metro Rail (Hyderabad) Limited (LTMRHL) for 100% equity shares of LTMRHL at an equity value of Rs 1,461.47 crore. Last year, the state government had decided to acquire Hyderabad Metro Rail Phase I through the Hyderabad Metro Rail Limited (HMRL).
The agreement was signed in the presence of key officials including the Chief Secretary and HMRL Chairman, K. Ramakrishna Rao, Special Chief Secretary, Municipal Affairs and Urban Development, Jayesh Ranjan, and HMRL Managing Director, Sarfaraz Ahmad, along with senior management representatives from L&T and LTMRHL. The share purchase agreement was signed by Ahmad representing HMRL, D.K. Sen representing L&T Ltd, and KVB Reddy representing LTMRHL.
As per HMRL’s statement, the debt of LTMRHL, totaling Rs 13,538.53 crore as of April 30, previously guaranteed by L&T, will now be refinanced with a guarantee from the Telangana government. Larsen & Toubro (L&T) Chairman and Managing Director, S.N. Subrahmanyan, met with Chief Minister Revanth Reddy earlier in the day in this context.
L&T Metro Rail (Hyderabad) Limited has been managing Hyderabad Metro Rail Phase I, covering three corridors with a total network length of 69 km, since November 2017. With an average daily ridership of around 4.5 lakh passengers and approximately 86 crore passenger trips to date, the system has been a significant transportation service in Hyderabad. The acquisition of Hyderabad Metro Rail Phase I is expected to enhance strategic alignment between the existing Phase I and the proposed Phase II network, facilitating better planning, execution, and service delivery for a more integrated and commuter-friendly metro network in Hyderabad.
