Telangana Metro takeover process expected to last more than year

HYDERABAD: The Telangana government will take over Hyderabad Metro Rail from Larsen & Toubro (L&T), ending the company’s role in the 69.2-km first phase developed under the public-private partnership model.

Officials said the government will pay L&T ₹2,000 crore and assume loans of ₹13,000 crore raised from a consortium of 12 banks led by State Bank of India. Since the project was structured as a joint venture of the Centre, the state and L&T in 2011, central approval will be required for the buyout and loan transfer. Metro services began in November 2017. Currently, over 1,000 trips operate daily across the Nagole–Raidurg, LB Nagar–Miyapur and JBS–MGBS corridors, carrying more than 4.8 lakh passengers.

Keolis contract till 2026

French operator Keolis runs the metro under a contract valid till November 2026, using communication-based train control (CBTC) technology. Officials said the government is likely to renew Keolis’s contract instead of seeking a new operator, citing its experience in Hyderabad.

Land and lease issues

L&T was allotted about 270 acres on lease for commercial use. Of the 18.5 lakh sq ft permitted, only 6.5 lakh sq ft has been developed, with some portions subleased. The state will now reclaim the land, a process expected to take time.

Complex transfer process

Alongside land and loan issues, operational agreements such as the Keolis contract must be formally transferred. Given the multiple clearances involved, officials estimate the takeover may take more than a year. The Hyderabad Metro first phase remains one of India’s largest urban transport projects, and its ownership shift marks a major change in the city’s infrastructure management.