Hyderabad Metro unveils plan to procure 60 new Rolling Stock coaches for Phase 1

Hyderabad, India (Metro Rail Today): Hyderabad Metro Rail Limited (HMRL) has decided to procure 60 additional metro coaches to augment capacity and improve services, even as approvals for Phase-II of the project are still awaited. The metro operator has approached the state government for the required clearances and plans to float tenders for new six-coach train sets once permission is granted, HMRL Managing Director Sarfaraz Ahmad said.

The move comes amid preparations by the government-owned special purpose vehicle to take over Phase-I operations of the Hyderabad Metro from L&T Metro Rail Hyderabad (L&TMRH) by the end of the current financial year. Phase-I spans 69.2 km across three corridors.

“The immediate priority is to take over Phase-I with the existing partners. The Chief Minister’s direction is very clear—passengers should not feel any difference when the government takes over operations. If metro services can be run by governments across the country, there is no reason Hyderabad cannot do the same,” Ahmad said.

Alongside the transition, the government is working to resolve long-standing issues related to common ticketing, first- and last-mile connectivity, and the maintenance of street-level infrastructure beneath metro stations. These measures, officials said, are essential to improving the overall commuter experience once the system comes under full public ownership.

As part of the takeover process, HMRL has appointed IDBI Capital as a financial consultant to review finance and accounting aspects of Phase-I operations. A technical consultant is also expected to be finalised shortly, with the shortlist including public sector firms as well as private entities such as Deutsche Bahn and Delhi Metro Rail Corporation. Ahmad said the financial consultant’s report is expected within 10 days, following which the technical consultant will be given three weeks to submit its assessment.

Simultaneously, discussions are underway with lenders to restructure existing loans. Under the agreement with L&T, the Telangana government is required to take over loans worth around ₹13,000 crore and pay approximately ₹2,000 crore to buy out the project, effectively making Phase-I a fully state-owned entity. L&TMRH’s funding includes non-convertible debentures and commercial papers, and the government is exploring the possibility of renegotiating terms with funding agencies.

Ahmad also indicated that a decision would be taken on restructuring HMR on the lines of Delhi Metro Rail Corporation. In the proposed framework, two entities would operate, including Hyderabad Airport Metro Limited, which is expected to form a joint venture with the Centre for Phase-II implementation.

Regarding Phase-II plans, Ahmad said proposals covering Phases II-A and II-B—spanning 162 km across eight corridors at an estimated cost of ₹42,000 crore—are currently under technical review by the Union government.