Telangana Government Takes Full Control of Hyderabad Metro Rail Project
Telangana takes over Hyderabad metro
Hindustan Times
Image: Hindustan Times
The Telangana government has regained complete control of the Hyderabad metro rail project by acquiring 100% equity shares from Larsen and Toubro for ₹1,461.47 crore (approximately $176 million USD). This move aims to enhance coordination between current operations and upcoming expansions, with the metro system currently serving around 450,000 passengers daily.
- 01Telangana government acquires full control of Hyderabad Metro Rail from L&T.
- 02The acquisition cost is ₹1,461.47 crore (about $176 million USD).
- 03Hyderabad Metro Rail has been operational since November 2017, serving approximately 450,000 passengers daily.
- 04L&T's divestment aligns with its strategy to focus on core engineering and technology businesses.
- 05The acquisition is expected to improve coordination for future expansions of the metro system.
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On Thursday, the Telangana government officially took over the Hyderabad metro rail project from Larsen and Toubro (L&T) by signing a share purchase agreement for 100% equity shares of L&T Metro Rail (Hyderabad) Limited (LTMRHL) at a value of ₹1,461.47 crore (approximately $176 million USD). This acquisition is part of L&T's strategy to divest from development projects and focus on its core engineering and technology sectors. The Hyderabad Metro Rail, operational since November 2017, spans around 69 kilometres and caters to about 450,000 passengers daily, with a total of nearly 8.6 billion passenger journeys recorded since its inception. The Telangana government will also refinance LTMRHL's existing debt of ₹13,538.53 crore under its guarantee, which is expected to enhance coordination between current operations and the proposed Phase-II expansion of the metro system.
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This acquisition will likely lead to better management and expansion of the metro system, benefiting commuters in Hyderabad.
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