NIIF negotiates with L&T to invest Rs 4k cr in Hyderabad metro
RAILWAYS & METRO RAIL

NIIF negotiates with L&T to invest Rs 4k cr in Hyderabad metro

National Investment and Infrastructure Fund (NIIF) is negotiating with Larsen and Toubro (L&T) to invest Rs 4,000 crore in the Hyderabad metro project.

L&T's big investment in a single project has been suffering due to the cost and time overruns, and traffic loss more affected due to the Covid-19 pandemic.

The company talks to the Telangana government and the State Bank of India (SBI) to stabilise the financial assets. Further, the investment except through the convertible instrument will help the project debt of Rs 13,500 crore and refrain it by extending the loan tenors. According to the sources, NIIF's sponsors can also invest in the project but have not committed.

As per the sources, the company seeks a soft loan from the Telangana government of about Rs 5,000 crore.

Though it has declined the financial assistance of L&T earlier, the state government shall be considering the proposal to hint that it may help the company to raise finances from other financial institutions.

Instead of 180 days, the operations were closed for 169 days, due to which L&T was unable to invoke the Majeure. Besides, it has claimed Rs 5,000 crore for the delay in project execution because of the right of way issues and approvals.

Earlier this year, the company submitted a detailed financial analysis to Chief Minister K Chandrasekhar Rao. According to the estimates, on average, the operator has been making losses of Rs 5 crore each day while just earning Rs 1 crore each day. Till now, it has faced losses of about Rs 4,000 crore.

Director and senior executive vice president of L&T, Dip Kishore Sen, said that the company is planning to reduce its debt by incorporating extra investors. It will also talk to the government to permit real estate mortgaging rights and full the lease period to ensure transit-oriented development (TOD) monetisation.

The project's overall asset value is Rs 17,946 crore, from which Rs 2,439 crore is equity, while the remaining is debt. The company commissioned the project last year in February but got hit by the Covid-19 pandemic. With its daily passengers of about 700,000 to 800,000 to make the project viable, the company managed 400,000 before the Covid lockdowns, after which the project landed still since then limping to 160,000 passengers volume last month.

Image Source


Also read: UPMRC invites bids for underground section of Agra Metro’s Line-1

Also read: Kodambakkam-Poonamallee metro stretch to be ready by June 2024

National Investment and Infrastructure Fund (NIIF) is negotiating with Larsen and Toubro (L&T) to invest Rs 4,000 crore in the Hyderabad metro project. L&T's big investment in a single project has been suffering due to the cost and time overruns, and traffic loss more affected due to the Covid-19 pandemic. The company talks to the Telangana government and the State Bank of India (SBI) to stabilise the financial assets. Further, the investment except through the convertible instrument will help the project debt of Rs 13,500 crore and refrain it by extending the loan tenors. According to the sources, NIIF's sponsors can also invest in the project but have not committed. As per the sources, the company seeks a soft loan from the Telangana government of about Rs 5,000 crore. Though it has declined the financial assistance of L&T earlier, the state government shall be considering the proposal to hint that it may help the company to raise finances from other financial institutions. Instead of 180 days, the operations were closed for 169 days, due to which L&T was unable to invoke the Majeure. Besides, it has claimed Rs 5,000 crore for the delay in project execution because of the right of way issues and approvals. Earlier this year, the company submitted a detailed financial analysis to Chief Minister K Chandrasekhar Rao. According to the estimates, on average, the operator has been making losses of Rs 5 crore each day while just earning Rs 1 crore each day. Till now, it has faced losses of about Rs 4,000 crore. Director and senior executive vice president of L&T, Dip Kishore Sen, said that the company is planning to reduce its debt by incorporating extra investors. It will also talk to the government to permit real estate mortgaging rights and full the lease period to ensure transit-oriented development (TOD) monetisation. The project's overall asset value is Rs 17,946 crore, from which Rs 2,439 crore is equity, while the remaining is debt. The company commissioned the project last year in February but got hit by the Covid-19 pandemic. With its daily passengers of about 700,000 to 800,000 to make the project viable, the company managed 400,000 before the Covid lockdowns, after which the project landed still since then limping to 160,000 passengers volume last month. Image Source Also read: UPMRC invites bids for underground section of Agra Metro’s Line-1 Also read: Kodambakkam-Poonamallee metro stretch to be ready by June 2024

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?