Telangana Assembly clears govt move to take control of Hyderabad Metro

Hyderabad: The Telangana Legislative Assembly on Saturday passed a resolution endorsing the state government’s decision to take over Phase-I of the Hyderabad Metro Rail Project from infrastructure major L&T, marking a significant shift in the management of the city’s mass transit system.

Phase-I takeover to streamline expansion plans

Chief Minister A. Revanth Reddy, who moved the resolution in the House, stated that Phase-I of the metro spans 69 km and is currently under private management.

He said the takeover through Hyderabad Metro Rail Ltd (HMRL) is aimed at resolving technical, legal and administrative hurdles that have been delaying further expansion.

The Chief Minister noted that the Centre had raised concerns over taking up new metro phases while the existing network remained under private control. Bringing Phase-I under government management, he said, would help address these concerns and facilitate smoother coordination with the Union government.

Proposals submitted for phase-II expansion

Revanth Reddy informed the Assembly that the state has already submitted proposals to the Centre for Phase-II A and Phase-II B of the project, covering 76.4 km and 86.1 km respectively.

He emphasized that the state plans to implement these new phases through a joint partnership between the Centre and the state government, once the issues surrounding Phase-I are resolved.

Financial structure of the takeover

According to official sources, the state government had in 2025 agreed to acquire L&T’s stake in the metro project by paying ₹2,000 crore for equity in L&T Metro Rail Hyderabad Ltd.

In addition, the government will take over the company’s debt of approximately ₹13,000 crore. L&T currently holds about 90% equity in the project and had earlier expressed its intent to exit by offloading its stake through a Special Purpose Vehicle (SPV), citing operational challenges and accumulated losses.

Government aims for world-class public transport

The Chief Minister said the takeover is part of a broader plan to strengthen public transport infrastructure in Hyderabad and position the city as a globally competitive urban centre.

He thanked members of the Assembly for supporting the resolution, stating that the move would accelerate metro expansion and improve urban mobility.

Opposition flags concerns

However, BRS MLA T. Harish Rao said that his party’s views were not considered during the process and asserted that the resolution could not be termed unanimous.

Despite the objections, the resolution was adopted by the House, with Congress MLA Balu Naik, who was in the chair, formally announcing its passage.

Way forward

With the Assembly’s approval, the Telangana government is expected to initiate formal steps to take control of Phase-I operations and advance discussions with the Centre for the next phases of metro expansion, a move seen as crucial for Hyderabad’s long-term urban mobility roadmap.