The Telangana government on Thursday regained complete control of the Hyderabad metro rail project, taking it over from its original concessionaire Larsen and Toubro (L&T), officials said.
According to an official statement, the state government signed a share purchase agreement with L&T and its subsidiary L&T Metro Rail (Hyderabad) Limited (LTMRHL) on Wednesday for the acquisition of 100% equity shares of LTMRHL at an equity value of ₹1,461.47 crores.
The agreement was signed by Hyderabad Metro Rail Ltd (HMRL) managing director Sarfaraz Ahmad, L&T advisor (development projects) D K Sen and LTMRHL managing director K V B Reddy.
In a separate statement on Thursday, L&T said it had signed an agreement with the state government seeking to divest its entire stake in L&T Metro Rail (Hyderabad) Limited (LTMRHL).
“The divestment represents a value-driven monetisation of a mature infrastructure asset and is aligned with L&T’s broader strategy of exiting the development projects portfolio and unlocking capital for redeployment in its core engineering and technology-led businesses,” the statement said.
L&T chairman and managing director S N Subrahmanyan said Hyderabad metro rail project is a world-class asset and a good example of our ability to deliver large-scale infrastructure that transforms cities and improves quality of life.
“We are confident that under the stewardship of the Telangana government, the project will continue to grow and create long-term value for all stakeholders,” he said.
{{/usCountry}}“We are confident that under the stewardship of the Telangana government, the project will continue to grow and create long-term value for all stakeholders,” he said.
{{/usCountry}}As per the agreement, the Telangana Government has acquired 100% equity shares of LTMRHL for a total value of ₹1,461.47 crore. The existing debt of ₹13,538.53 crore on LTMRHL, as of April 30, would be refinanced under the guarantee of the Telangana government, replacing the earlier backing provided by L&T.
“IDBI Capital acted as the transaction advisor for the deal, while legal advisory services were provided by Saraf & Partners,” the official statement said.
The Hyderabad Metro Rail Phase-I has been operational since November 2017, managed by L&T Metro Rail (Hyderabad) Limited. The network spans approximately 69 kilometres across three corridors, making it one of the most extensive metro systems in the country.
Currently, the metro system caters to around 4.5 lakh passengers daily. Since its inception, it has recorded nearly 8.6 billion passenger journeys. “With the state government now taking full control, better coordination is expected between the existing Phase-I operations and the proposed Phase-II expansion,” the statement added.