Telangana Government Acquires L&T's Hyderabad Metro Stake for ₹2,000 Crore

In a significant development for urban transportation in Hyderabad, the Telangana government has reached an agreement to acquire Larsen & Toubro's (L&T) stake in the Hyderabad Metro Rail Phase 1 project. The deal, valued at ₹2,000.00 crore, marks a major shift in the ownership and management of the city's metro system.

Key Points of the Acquisition

• Purchase Price: The Telangana government will pay ₹2,000.00 crore to acquire L&T Metro Rail Hyderabad Ltd's stake.
• Debt Assumption: In addition to the purchase price, the state will take on the project's existing debt of approximately ₹13,000.00 crore.
• Negotiation Process: The acquisition follows discussions between Telangana Chief Minister Revanth Reddy and L&T Group Chairman and Managing Director S.N. Subrahmanyan.

Implications for Metro Expansion

The acquisition is closely tied to the planned expansion of Hyderabad's metro network:

• Phase 2 Approval: The deal aims to expedite approval for Phase 2 of the metro project.
• Government of India's Concerns: Prior to this agreement, the central government had expressed worries about operational integration between the privately-operated Phase 1 and the proposed government-executed Phase 2.
• L&T's Position: L&T has declined to participate as an equity partner in Phase 2, citing its exit from the transportation concession business.

Future of Hyderabad Metro

The Telangana government has ambitious plans for expanding the metro network:

• Expansion Proposals: The state has submitted proposals for Phase 2A and 2B expansion.
• Network Growth: The proposed expansion would add 163 kilometers to the existing metro network.
• Current Standing: Hyderabad presently ranks ninth in India for metro network length.

This acquisition represents a strategic move by the Telangana government to consolidate control over the city's metro system and pave the way for future expansion. As Hyderabad continues to grow, the enhanced public transportation infrastructure is expected to play a crucial role in managing urban mobility and supporting economic development.