HYDERABAD: The Legislative Assembly on Saturday adopted a resolution approving the state government’s takeover of Hyderabad Metro Phase I from L&T and urging the Union government to grant early approval for Phase II expansion.
Introducing the resolution, Chief Minister A Revanth Reddy said the decision was taken in public interest to expand the Metro network in the Hyderabad Core Urban Region. He stated that Phase I currently covers 69 km, while proposals for Phase II(A) (76.4 km) and Phase II(B) (86.1 km) have been submitted to the Union government.
Legislative Affairs Minister D Sridhar Babu said Phase II(A), comprising five corridors over 76.4 km, is estimated at Rs 24,269 crore, while Phase II(B), with three corridors spanning 86.1 km, is estimated at Rs 19,579 crore. The proposals were submitted in November 2024 and June 2025 as joint venture projects.
He said the Union government required a “Definitive Agreement” with L&T to ensure integration between Phase I and Phase II, as most proposed corridors are extensions of existing lines. L&T declined to participate further, citing its exit from PPP projects, but offered to exit Phase I if compensated for its Rs 7,000 crore equity, with the state government taking over project debt of about Rs 13,000 crore.
The state government engaged IDBI Capital for financial and legal due diligence and DMRC’s consultancy arm for technical review. The asset value of the Metro was estimated between Rs 20,544 crore and Rs 22,102 crore.
To finance the takeover, the Committee of Secretaries recommended a loan from Indian Railway Finance Corporation, with 75% in Japanese Yen and the remainder as a Rupee term loan.