Fri Sep 26 00:10:00 UTC 2025: **Hyderabad Metro Phase 1 to be Taken Over by Telangana Government in ₹2,000 Crore Deal**

**Hyderabad, September 26, 2025** – In a landmark move for Hyderabad’s infrastructure, the Telangana government has reached an agreement with Larsen & Toubro (L&T) to take over the operations of the Hyderabad Metro Phase 1 project. The deal, valued at ₹2,000 crore, paves the way for the much-anticipated Phase 2 and Phase 3 expansions of the metro network across the city.

The agreement was finalized during a meeting between Chief Minister Revanth Reddy and L&T representatives on Thursday. As part of the deal, the state government will assume the ₹13,000 crore debt associated with Phase 1. In return, the government will pay L&T ₹2,000 crore as a one-time settlement for their equity in the Hyderabad Metro Rail Special Purpose Vehicle.

This decision comes after the central government made it clear that Phase 2 approvals were contingent on a “Definitive Agreement” between the Telangana government and L&T. L&T, however, expressed their unwillingness to participate in Phase 2 due to their strategic shift away from such ventures. This impasse prompted the Chief Minister to initiate discussions and explore alternatives.

During negotiations, L&T offered to sell its 90% stake in Phase 1 to the state government. This offer was accepted, leading to the current agreement.

The takeover will allow the government to expedite the development of Phase 2, a 163-kilometer expansion plan submitted to the central government. This project aims to address the growing transportation needs of the rapidly expanding city.

Furthermore, the government will also gain control of 260 acres of land allocated to the metro project, which can be used for commercial purposes, potentially generating additional revenue.

The deal is expected to be formalized soon after legal and financial due diligence is completed. While the government has not yet decided whether to operate the metro system directly or partner with another entity for operations and maintenance, the takeover marks a significant step towards expanding and improving public transportation in Hyderabad.

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