Telangana Acquires Hyderabad Metro, Secures ₹13,600 Crore Long-Term Refinance

In a major boost to Hyderabad’s urban transport infrastructure, the Telangana government has formally taken full control of the Hyderabad Metro Rail Phase-I project from L&T and secured a massive ₹13,600 crore refinancing package from the Indian Railway Finance Corporation (IRFC) . The move is being seen as a landmark restructuring exercise that could strengthen the metro’s long-term financial stability while accelerating future expansion plans across the city.

The agreement was signed in New Delhi between IRFC , L&T Metro Rail (Hyderabad) Limited , and Hyderabad Metro Rail Limited (HMRL) in the presence of IRFC CMD & CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao . Following the acquisition of 100 percent stake in the metro project through HMRL, Hyderabad Metro has now effectively become a fully government-owned strategic public transport asset.

Officials said the refinancing package will be used to replace existing high-cost liabilities, including non-convertible debentures (NCDs) , commercial papers, and working capital loans. The new structure replaces expensive short-term borrowings with lower-cost long-term rupee financing spread over 20 years with quarterly repayment schedules.

The deal is backed by a strong credit protection mechanism, including a Telangana government guarantee and an RBI-supported direct debit mandate. The state government has also approved an equity infusion of around ₹1,385 crore through HMDA to facilitate the takeover process.

The refinancing is expected to significantly ease the metro’s debt burden, which had become a major challenge under the public-private partnership (PPP) model, especially after the COVID-19 pandemic impacted ridership and revenues. Officials believe the lower-cost financing could help the project turn fully profitable in the near future.

Speaking on the occasion, K. Ramakrishna Rao said the Telangana government under Chief Minister A. Revanth Reddy is committed to building a sustainable and environment-friendly public transport network for Hyderabad, which is rapidly emerging as a major economic and technology hub.

Spread across 69.2 kilometres , the Hyderabad Metro operates through three corridors and 57 stations , serving more than five lakh passengers daily . The government said the refinancing would also create a strong financial foundation for future metro expansion, improved last-mile connectivity, and better integration with Hyderabad’s growing urban landscape.