Telangana Government takes full control of Hyderabad Metro from L&T in ₹1,461 crore Deal

Hyderabad, India (Metro Rail Today): In a landmark development for India’s urban transit sector, the Government of Telangana has officially taken full ownership of Hyderabad Metro Rail Phase-I from Larsen & Toubro (L&T), marking the end of one of the country’s most prominent public-private partnership metro projects under private management.

The takeover was formalised on April 29, 2026, through the signing of a Share Purchase Agreement (SPA) under which the state acquired 100% equity in L&T Metro Rail (Hyderabad) Limited (LTMRHL) for ₹1,461.47 crore. Alongside the equity acquisition, the Telangana government will also assume responsibility for the project’s outstanding debt estimated at approximately ₹13,538.53 crore.

The move is being seen as a strategic shift aimed at strengthening government-led urban transport planning, improving operational coordination, and accelerating future metro expansion projects in Hyderabad.

Telangana Government to Lead Hyderabad Metro Operations

Following the acquisition, Hyderabad Metro Rail Phase-I will now be managed directly under the Telangana government’s oversight, with the Chief Secretary of Telangana expected to chair the newly acquired entity responsible for operations and future development.

The government believes the transition will allow better integration between the existing metro corridors and the upcoming Phase-II expansion plans while enabling more commuter-focused policies and infrastructure improvements.

Spread across nearly 69 km, Hyderabad Metro Phase-I currently serves over 4.5 lakh passengers daily and remains one of the largest metro rail networks developed under the PPP model in India.

The operational network includes the Red Line connecting Miyapur to LB Nagar, the Blue Line running from Nagole to Raidurg, and the Green Line linking JBS Parade Ground with MGBS. Key interchange stations such as Ameerpet, MGBS, and Parade Ground play a critical role in the city’s daily passenger movement.

Despite the ownership transition, metro services will continue uninterrupted with trains operating daily between 6 AM and 11 PM. Existing ticketing systems, including smart cards and QR-based ticketing through digital platforms like PhonePe and Paytm, will remain functional.

Strategic Shift in Urban Mobility Planning

The takeover comes at a time when Hyderabad is witnessing rapid urban expansion and growing demand for efficient public transportation infrastructure. Industry experts believe that direct government control could facilitate faster decision-making, improved multimodal integration, and more coordinated transit-oriented development across the city.

Mrs. Mamta Shah, MD & CEO of Urban Infra Group, said, “The Hyderabad Metro takeover represents a defining moment in India’s urban mobility landscape. Bringing metro operations under direct government control could create stronger alignment between infrastructure planning, urban development, and future expansion strategies. Hyderabad now has an opportunity to build a more integrated and passenger-centric transport ecosystem.”

The transition also reflects a broader national conversation around the long-term sustainability of large-scale PPP metro projects, particularly those involving high capital costs and complex financing structures.

Future Expansion and RRTS Possibilities

The state takeover is expected to play a crucial role in shaping Hyderabad Metro’s Phase-II expansion plans. The Central Government has recently proposed adopting an Alternative Rapid Rail Transit System (RRTS) model for future corridors as a way to reduce project costs and improve implementation efficiency.

This development could influence the structure of future participation by private players, including whether L&T continues to be involved in Hyderabad’s upcoming transit projects or gradually exits the city’s urban transport sector.

Urban mobility experts suggest that seamless integration between existing metro corridors, future RRTS systems, bus services, and last-mile connectivity solutions will be essential for Hyderabad as it continues evolving into one of India’s fastest-growing metropolitan regions.

With the Telangana government now fully controlling Hyderabad Metro Phase-I, the city’s urban transit system enters a new phase focused on long-term expansion, public sector-led coordination, and future-ready mobility infrastructure.