The Telangana Cabinet is scheduled to meet on October 1 to consider funding arrangements for the proposed takeover of Hyderabad Metro Rail Phase-I from L&T and plans to distribute Indiramma saris to 10 mn women. The distribution is being considered ahead of the Bathukamma festival, which is scheduled from October 11 to 18.

The Cabinet is expected to examine the modalities and timeline for distributing the saris. The government distributed the garments last year from November 19, the birth anniversary of former prime minister Indira Gandhi, but the programme may be brought forward this year because of the festival schedule.

Ministers are also expected to review the delayed takeover of Hyderabad Metro Rail Phase-I, which the state government considers important for enabling the expansion of the network under Phase-II. The transaction has been held up because the state has not finalised the debt funding required to complete it.

In April, the Telangana government, through Hyderabad Metro Rail, signed a share purchase agreement with L&T Metro Rail Hyderabad for the acquisition of the project. Under the agreement, the state agency is required to pay about Rs. 146 bn to L&T Metro Rail for its equity in the project and assume existing debt of about Rs. 136 bn through refinancing with financial institutions.

SBI Capital Markets is advising the state on raising funds, but the financing arrangement has not been finalised. Indian Railway Finance Corporation, which had initially agreed to fund the transaction, raised objections to parts of the proposed structure, contributing to the delay.

The original agreement set June as the completion deadline, which was later extended to September 30 because the debt agreement remained unresolved. With that deadline approaching, the state government is likely to seek another three-month extension from L&T, potentially moving completion to December 31.