DMRC and IDBI Capital appointed consultants to fast-track Hyderabad Metro handover-takeover process

Hyderabad, India (Metro Rail Today): The Telangana government has accelerated efforts to take over the operations of Hyderabad Metro Rail from L&T Metro Limited, signalling a decisive push to expand and modernise the city’s rapid transit network. Chief Secretary K. Ramakrishna Rao has recently chaired a series of high-level meetings with newly appointed consultants IDBI Capital and the Delhi Metro Rail Corporation (DMRC) to fast-track the process.

According to official sources, the consultants have been tasked with submitting their detailed reports by March, following which the state government is expected to allocate funds for land acquisition for Metro Phase 2A and Phase 2B. These steps mark a critical transition phase as the state prepares to assume greater control over metro operations while laying the groundwork for large-scale expansion.

Consultants Appointed for Takeover and Expansion

Last month, the Telangana government formally appointed IDBI Capital as the financial advisor and DMRC as the technical advisor for facilitating the takeover of Hyderabad Metro Rail Phase 1 and guiding the next stage of development. The advisory framework is intended to assess financial viability, asset valuation, operational transition, and technical requirements for future expansion.

The move is also aimed at upgrading existing infrastructure and scaling up services to meet rising urban mobility demand. As part of the expansion strategy, the state plans to procure 60 new metro coaches, strengthening fleet capacity in anticipation of new corridors under Phase 2.

Phase 2A & 2B: A Major Network Expansion

Hyderabad Metro Phase 2A and Phase 2B together span 162 route kilometres, with an estimated investment of ₹42,000 crore. The expanded network is expected to significantly improve east-west and north-south connectivity, decongest arterial roads, and support Hyderabad’s rapid urban and economic growth.

Once the consultants submit their reports, the Union government will take a call on its participation in the project, including potential funding support and approvals under the Metro Rail Policy. Central involvement will be a key determinant in shaping the project’s financing structure and implementation timeline.

Commenting on the development, Mrs. Mamta Shah, Managing Director & CEO, Urban Infra Group, said the state’s approach reflects a broader trend in urban rail governance across India.

“Hyderabad’s move to reassess ownership, operations, and future expansion of its metro system is a timely and strategic decision. A stronger public-sector-led framework, supported by experienced institutions like DMRC and professional financial advisory, can help optimise lifecycle costs and accelerate Phase 2 delivery. This model, if executed well, could offer valuable lessons for other large metro systems in the country,” she said.

Looking Ahead

Hyderabad Metro has long been viewed as a pioneering public-private partnership in India’s metro sector. The proposed takeover and expansion represent a shift toward a more state-driven model, aimed at ensuring long-term sustainability, network integration, and affordability.

With consultant reports expected shortly and funding decisions to follow, the coming months will be crucial in determining how quickly Hyderabad’s next phase of metro expansion moves from planning to execution, shaping the city’s mobility landscape for decades to come.