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Telangana Acquires Hyderabad Metro Rail from L&T for Rs 1,461 Crore

The Telangana government has formally acquired Hyderabad Metro Rail Phase I from Larsen & Toubro for Rs 1,461 crore. The state signed a share purchase agreement to take over 100% equity of L&T Metro Rail (Hyderabad) Limited. The debt of Rs 13,538 crore will be refinanced with a state government guarantee. The acquisition aims to integrate the existing Phase I with the proposed Phase II network for a more cohesive metro system.

Key Points: Telangana Buys Hyderabad Metro Rail from L&T for Rs 1,461 Crore

  • Telangana acquires 100% equity of LTMRHL for Rs 1,461 crore
  • Debt of Rs 13,538 crore refinanced with state guarantee
  • Metro serves 4.5 lakh daily passengers, 86 crore trips since 2017
  • Acquisition aims to integrate Phase I and proposed Phase II network
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Telangana acquires Hyderabad Metro Rail from L&T for Rs 1,461 crore

Telangana acquires Hyderabad Metro Rail Phase I from L&T for Rs 1,461 crore, taking over debt of Rs 13,538 crore to integrate Phase I and II.

"The acquisition will enable closer strategic alignment between the existing Phase I and the proposed Phase II network - HMRL statement"

Hyderabad, April 29

The Telangana government on Wednesday formally acquired Hyderabad Metro Rail Phase I from Larsen & Toubro Limited for Rs 1,461 crore.

The state government signed a share purchase agreement with Larsen & Toubro Limited and L&T Metro Rail (Hyderabad) Limited (LTMRHL) for the acquisition of 100 per cent equity shares of LTMRHL at an equity value of Rs 1,461.47 crore.

The state government had last year decided to take over Hyderabad Metro Rail Phase I through the Hyderabad Metro Rail Limited (HMRL).

The agreement was signed in the presence of the Chief Secretary and HMRL Chairman, K. Ramakrishna Rao, Special Chief Secretary, Municipal Affairs and Urban Development, Jayesh Ranjan, HMRL Managing Director, Sarfaraz Ahmad, and senior management of L&T and LTMRHL.

The share purchase agreement was signed by Ahmad on behalf of the HMRL, D.K. Sen on behalf of the L&T Ltd, and KVB Reddy on behalf of the LTMRHL.

According to a statement by the HMRL, the debt of LTMRHL, amounting to Rs 13,538.53 crore, as on April 30, which was guaranteed by L&T, shall now be refinanced with a guarantee issued by the Telangana government.

The transaction advisor is IDBI Capital, and the legal advisory services were provided by Saraf & Partners.

In this context, Larsen & Toubro (L&T) Chairman and Managing Director, S.N. Subrahmanyan, called upon Chief Minister Revanth Reddy earlier in the day.

L&T Metro Rail (Hyderabad) Limited has been operating Hyderabad Metro Rail Phase I, spanning three corridors with a total network length of 69 km, since November 2017.

The system currently serves an average daily ridership of approximately 4.5 lakh passengers and has logged in about 86 crore passenger trips since its inception.

The acquisition of Hyderabad Metro Rail Phase I will enable closer strategic alignment between the existing Phase I and the proposed Phase II network, fostering seamless integration in planning, execution, and service delivery. This unified approach is expected to strengthen and support the creation of a more cohesive, reliable, and commuter-friendly metro network for Hyderabad, a statement said.

- IANS

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Reader Comments

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Sarah B
As someone who rides the metro daily from Ameerpet to HITEC City, this is a mixed bag. L&T did a decent job with operations, but now with the government taking over, will we see more corruption in maintenance? Hope the CM keeps professional management intact.
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Ravi K
Rs 1,461 crore for 100% stake? That's a steal considering the ridership of 4.5 lakh daily! But that Rs 13,538 crore debt transfer is scary. Hope the state's finances can handle it without affecting other welfare schemes. This is one big gamble by Revanth Reddy ji 🧐
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Priyanka N
Brilliant move! Now the metro can be truly integrated with buses and MMTS. No more coordination issues between different agencies. This is what happens when you have a visionary CM who thinks long-term. Hyderabad is turning into a world-class city step by step 🌟
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Ryan S
I'm a bit skeptical. The government has a terrible track record of running public transport efficiently. Look at RTC buses - losses every year. Hope they don't mess up the punctuality and cleanliness that L&T maintained. Private sector was doing a good job, why fix what's not broken? 🤷‍♂️
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Shweta Y
Great news! Finally the metro will be affordable for everyone. L&T had jacked up fares way too much for common people. Now with government control, we can expect student passes, senior citizen discounts, and integration with city bus network. Thank you Telangana government! 🙏

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