The Telangana authorities has agreed to take over Part 1 of the Hyderabad Metro Rail mission, absorbing ₹13,000 crore in debt and paying ₹2,000 crore to Larsen & Toubro Ltd. because it pushes for central clearance on Part 2.
The choice, finalized after high-level talks between Chief Minister A. Revanth Reddy and L&T Chairman and MD S.N. Subrahmanyan on Thursday, marks a strategic transfer by the state to unblock progress on the long-stalled metro growth.
Part 1 of the metro, operated by L&T’s subsidiary L&T Metro Rail (Hyderabad) Ltd, has been a monetary pressure on the corporate. L&T’s web loss from the mission widened to ₹626 crore in FY25, whereas operational and different revenue dropped 21% to ₹1,109 crore, in accordance with its newest annual report.
With mounting losses and a scarcity of sustained state help, L&T had formally requested to exit the mission. As a part of the settlement, the Telangana authorities will assume the total debt load of Part 1 and settle L&T’s fairness stake with a one-time ₹2,000 crore payout.
Though Chief Minister Reddy urged L&T to stay concerned in Part 2, Subrahmanyan declined to take part as an fairness companion and refused to signal a definitive settlement on price and income sharing. The corporate cited main issues over seamless operations between the 2 phases and unresolved monetary constructions.
This transition now clears a path for the central authorities’s long-awaited approval of Part 2, although the absence of a personal companion could reshape the funding and execution mannequin.
L&T, in the meantime, reported a consolidated web revenue of ₹3,617 crore on income of ₹63,679 crore for the June quarter. Its inventory closed 0.8% decrease on the NSE at ₹3,644.40.
