HYDERABAD: Larsen and Toubro (L&T) has expressed its readiness to hand over the Hyderabad Metro Rail Phase-I system to the government. The company recently submitted a letter to Union Housing and Urban Affairs Minister Manohar Lal Khattar, requesting the Centre or state to take over the 69.2 km network spanning three corridors.
With the state government proposing Phase-II, potential challenges in joint operations in the Metro project — once hailed as the country’s largest public-private partnership (PPP) initiative — have emerged, as the new corridors will run on Phase-I tracks to ensure seamless connectivity for commuters. L&T cited ongoing losses as the reason for requesting the government to take over Phase-I, in addition to avoiding operational complications.
Meanwhile, the Centre has asked Telangana to clarify aspects of the Phase-II Detailed Project Report (DPR), including arrangements with L&T regarding fare-sharing, electricity payments, and unresolved Phase-I issues.
Sources, speaking on condition of anonymity, told TNIE that Chief Minister A Revanth Reddy had earlier met Khattar in Delhi to discuss Phase-I and Phase-II operations.
L&T reportedly conveyed that if Phase-I trains run on Phase-II tracks—or vice versa—there would be cost and revenue-sharing issues. The company suggested that the government either operate the systems independently or take over Phase-I entirely, as ongoing losses have made operations financially unsustainable.
In view of these joint operational issues, the Union Minister is said to have asked the chief minister how the state would manage seamless travel for commuters on the proposed Phase-II routes, which include Miyapur–Patancheru, LB Nagar–Hayathnagar, and MGBS –Chandrayangutta.