The Telangana government has formally approved the acquisition of the 100% equity stake held by Larsen & Toubro (L&T) in L&T Metro Rail (Hyderabad) Limited (L&TMRH), paving the way for Phase-I of the Hyderabad Metro Rail (HMR), spanning 69.2 km, to become a fully State-owned entity, through an official order issued on Friday.

The government has also cleared a major debt refinancing package through the Indian Railway Finance Corporation (IRFC) to ensure the financial stability of metro operations, approving a purchase consideration of ₹15,000 crore for acquiring L&T’s equity in L&TMRH. This will be funded through an IRFC loan of ₹13,615 crore, equivalent to the outstanding debt as of April 30, 2026.


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