Telangana Govt to Take Over Hyderabad Metro Phase-1 by March - End

The Telangana Cabinet’s decision to bring Hyderabad Metro Rail Phase-1 under full government control by March 31, 2026 signals a major shift in the management of one of India’s largest urban transit systems. Municipal Administration and Urban Development Minister Ponguleti Srinivas Reddy announced the move while outlining key Cabinet decisions, stating that the takeover is intended to safeguard a critical public infrastructure asset, ensure uninterrupted services, and stabilise the metro’s financial structure.

Phase-1 spans nearly 69 kilometres across three corridors - Miyapur to LB Nagar, Nagole to Raidurg, and JBS Parade Ground to Mahatma Gandhi Bus Station - forming the backbone of Hyderabad’s urban mobility network. The system is currently operated by L&T Metro Rail Hyderabad Ltd. (L&TMRHL) under a public-private partnership model. However, mounting debt obligations, pandemic-era ridership losses, and slower-than-expected revenue from commercial development have placed financial strain on the concessionaire, prompting the state to step in.

Under the proposed arrangement, the government is expected to assume approximately ₹13,000 crore in outstanding debt and pay around ₹2,000 crore to facilitate the private operator’s exit. This places the overall financial responsibility of the takeover at close to ₹15,000 crore . Officials believe state control will improve financial stability, protect public investment, and support future expansion plans.

For commuters, immediate changes are expected to be minimal. Authorities are likely to maintain fare stability in the short term to preserve affordability and ridership. Over time, fare rationalisation and targeted concessions could be considered as part of a broader effort to balance operational sustainability with public welfare.

Workforce continuity will be central to the transition. The metro currently employs several thousand personnel, including train operators, station staff, engineers, safety teams, administrative employees, and outsourced service workers. To avoid operational disruption, most employees are expected to be retained initially. Over time, staffing may be reorganised to strengthen maintenance operations, improve safety oversight, and enhance passenger services at high-footfall stations.

Even if financial pressures emerge after the takeover, metro services are expected to continue, given their essential role in urban transport. While funding constraints could influence maintenance schedules or expansion timelines, the state’s intervention is widely viewed as a strategic step to ensure long-term sustainability, reliability, and commuter confidence in Hyderabad’s rapidly growing metropolitan landscape.