In a major decision that could reshape urban transport in the state, the Telangana Cabinet chaired by Chief Minister Revanth Reddy has approved the complete takeover of Hyderabad Metro Rail from L&T. The government aims to finish the takeover process by March 31, 2026, bringing Phase-1 operations fully under state control. The move is expected to remove key financial and technical hurdles that were slowing down the expansion of the metro network and to strengthen the future of public transport in Hyderabad.
As part of the takeover, the Telangana government will assume around ₹13,000 crore of loans linked to the metro project and will pay nearly ₹2,000 crore to L&T as a one-time settlement for the company’s investment. With this transition, Hyderabad Metro Rail Limited will become a fully government-owned entity. This change is expected to improve the project’s financial stability and make it easier to raise funds from domestic and international financial institutions at lower interest rates.
The decision is also aimed at speeding up approvals and funding for Metro Phase-2 expansion. So far, delays were being linked to the public-private partnership model, with the Centre reportedly hesitant to extend financial support while Phase-1 remained under private operation. By bringing the metro completely under government management, the Telangana government hopes to unlock central funding and push forward long-pending expansion plans to improve connectivity across Hyderabad and nearby growth corridors.
Officials believe that government control will allow better planning, integrated transport development, and improved use of metro assets to generate additional revenue beyond ticket sales. The focus will be on improving passenger experience, operational efficiency, and long-term sustainability of the metro system. The cabinet also discussed related urban development issues, including rehabilitation and compensation measures for families affected by major infrastructure projects such as the Musi River rejuvenation.
The Hyderabad Metro takeover is being seen as a strategic move to strengthen public transport, reduce traffic congestion, and support Hyderabad’s rapid urban growth. With the metro expected to play a key role in the city’s future mobility plans, the government’s decision could mark a turning point in how large infrastructure projects are managed in Telangana.