HYDERABAD: The state government has secured a term loan refinancing facility of up to Rs 13,600 crore from Indian Railway Finance Corporation Ltd (IRFC) for the Hyderabad Metro Rail Phase-I project.
The agreement documents were signed on Monday in New Delhi between IRFC, L&T Metro Rail (Hyderabad) Limited (LTMRHL) and Hyderabad Metro Rail Limited (HMRL) in the presence of IRFC Chairman and Managing Director Manoj Kumar Dubey and Chief Secretary K Ramakrishna Rao.
The Chief Secretary said the refinancing package would provide major financial relief to the Metro project by replacing high-cost borrowings with lower-cost long-term financing, thereby improving the project’s long-term financial sustainability and supporting future expansion plans.
Ramakrishna Rao said Hyderabad was emerging as one of India’s major growth engines and strengthening Metro connectivity was crucial to support economic expansion, reduce traffic congestion and improve urban quality of life. He added that the refinancing arrangement would reduce finance costs, improve financial flexibility and facilitate future Metro expansion.
The Rs 13,600 crore facility will refinance existing debt obligations, including non-convertible debentures, commercial papers and working capital loans. The loan has been structured for a tenure of 20 years with quarterly repayment mechanisms. The arrangement is backed by credit enhancement measures, including an unconditional and irrevocable payment guarantee from the Telangana government and an RBI-backed direct debit mandate.
Spread across 69.2 km with three corridors and 57 stations, Hyderabad Metro Rail Phase-I is among the country’s largest Metro projects developed under the Public-Private Partnership (PPP) model. The network currently serves over 5 lakh passengers daily.
The Chief Secretary highlighted the recent announcement of three high-speed rail corridors for Hyderabad, stating that the projects would significantly strengthen the city’s future connectivity.