There is also uncertainty over whether the government’s committee of secretaries will take a call on the estimated ₹1,000 crore required for repairs and asset maintenance. File Photo.

There is also uncertainty over whether the government’s committee of secretaries will take a call on the estimated ₹1,000 crore required for repairs and asset maintenance. File Photo.
| Photo Credit: The Hindu

The Telangana government’s attempt to secure a substantial loan from the Indian Railway Finance Corporation (IRFC) to acquire the 69.2-km Hyderabad Metro Rail (HMR) Phase I from L&T Metro Rail Hyderabad (L&TMRH) is facing multiple financial, regulatory and institutional hurdles, officials familiar with the discussions said.

The proposal centres on a ₹15,000-crore transaction, including a ₹13,000-crore debt component and a ₹2,000-crore equity payout. However, key aspects of the financing remain unclear, particularly the nature of sovereign guarantees, compliance with Reserve Bank of India (RBI) borrowing norms and the willingness of all stakeholders to segregate equity and debt.


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