Hyderabad Metro Rail Takeover Clears Path for Expansion

Hyderabad: Sources said the state government will submit the recently signed Hyderabad Metro Rail (HMR) takeover agreement with Larsen&Toubro (L&T) to the Center next week and seek faster approval for expansion of the network under Phase-II (Part-A and Part-B).

Detailed project reports (DPRs) on the expansion were pending with the Center for nearly a year as the government had stipulated that it should either take over Phase-I operations from L&T or ensure L&T’s participation in the expansion project. The state government completed the takeover of Phase-I on April 30, with L&T refusing to be a part of the expansion or integration plans and instead offering to exit.

Chief Minister A. Revanth Reddy has instructed HMR officials to visit Delhi next week to meet Union urban affairs ministry officials and submit takeover agreement documents. The CM is also expected to visit Delhi to meet Union Urban Affairs Minister Manohar Lal Khattar to push for early approvals, especially after the state government clears all hurdles flagged by the Centre.

The Cabinet approved the proposed Metro Rail expansion jointly with the Center in October 2024, following which DPRs for Phase-II were approved in May 2025. The Center had sought clarity on how L&T-run Phase-I will be integrated with Phase-II, which will be jointly developed by the state government and the Centre. He insisted on a formal agreement with L&T for integration. After L&T refused to participate, the government started purchasing the project.

On April 30, the state government officially acquired 100 per cent stake in L&T Metro Rail (Hyderabad) Limited (LTMRHL) for Rs 1,461.47 crore and also took responsibility for refinancing the company’s debt of Rs 13,538.53 crore. This move is expected to resolve all outstanding issues and ensure that the Center completes World War II. It is expected to secure approval for the phase.

Hyderabad Metro Phase-1 is currently recording an average daily ridership of around 4.5 lakh passengers. Officials believe that the state government taking full control of Phase-I will ensure better integration, planning, execution and service delivery for the proposed Phase-II network. It will pave the way for a more comprehensive and transportation-friendly urban transportation system in the city.