Delhi Metro To Help Sate To Takeover HMR Operations
Hyderabad: The state government is set to appoint Delhi Metro Rail Corporation (DMRC) as technical advisor to expedite the takeover of Hyderabad Metro Rail (HMR) Phase-I operations from L&T Metro Rail Hyderabad Ltd (L&TMRHL), official sources said.
The decision follows a decision taken at the last state cabinet meeting held in Medaram to expedite the process and ensure its completion before March 31, before the close of the current financial year 2025-26. The government wants to ease the transition in a time-bound manner while addressing the financial, legal and technical complexities surrounding the Metro Rail takeover.
The government has already appointed IDBI Bank as financial and legal advisor to oversee matters related to outstanding dues, liabilities, contractual obligations and valuation.
IDBI Bank submitted its comprehensive report to the authorities outlining the financial demands payable to L&T and other relevant economic parameters. Based on this assessment, discussions between Hyderabad Metro Rail Limited (HMRL) and L&T are expected to progress towards finalizing agreements and official documents. The report provides an important basis for negotiations and protects the government from future disputes, officials said.
The decision to appoint DMRC as technical advisor came after institutions assessing financial and legal issues were found to lack the expertise required to assess the complex engineering and operational systems of the metro rail. The Hyderabad Metro project is highly technology-oriented and includes advanced infrastructure and integrated systems that require detailed scrutiny. DMRC, with its extensive experience in metro rail system construction, operation and management in multiple cities, is expected to conduct a comprehensive technical due diligence audit.
Official sources said the scope of the technical assessment will include critical components such as rolling stock, electric traction systems, signaling technology based on Communication Based Train Control (CBTC), stations, warehouses, operational control centers and maintenance applications. The consultant will also evaluate asset conditions, system performance, safety standards and long-term sustainability. A formal order appointing the DMRC is expected to be issued shortly.
A high-level committee led by Chief Secretary K. Ramakrishna Rao is overseeing the entire process with an aim to complete the review and facilitate the takeover by March 31 in line with the deadline set by Chief Minister A Revanth Reddy. But senior officials acknowledged that the complexity of contracts and technical evaluations could take up to two months as rigorous review was essential to avoid future legal or operational complications.
The cabinet instructed officials to submit a detailed report on the way forward, including timelines and modalities for completing the acquisition. This report will be presented to the Cabinet for approval at its next meeting scheduled for February. The government is focusing on ensuring that financial, legal and technical consultations proceed in parallel to avoid delays and maintain transparency.
