Telangana Appoints SBICAPS To Reassess Hyderabad Metro Phase I
RAILWAYS & METRO RAIL

Telangana Appoints SBICAPS To Reassess Hyderabad Metro Phase I

The Telangana government has engaged SBI Capital Markets Limited (SBICAPS) to reassess valuation and financing of Hyderabad Metro Rail Phase I despite a similar exercise last year. The appointment revives scrutiny over a prior valuation by IDBI Capital and the Rs 840 mn upfront fee paid to release the first loan tranche. The consultant will be asked to raise loans for the takeover and select lending agencies.

Earlier due diligence by IDBI Capital and Delhi Metro Rail's consultancy had estimated Phase I assets at between Rs 205.44 bn and Rs 221.02 bn. The move follows delays in disbursement by the Indian Railway Finance Corporation and questions over who will bear interest costs of nearly Rs 25 mn a day on takeover loans. The study will also examine expansion and financing for Metro Phase II.

The appointment of SBICAPS came amid tensions with State Bank of India after the bank secured a stay from the Telangana High Court on the Raidurg land auction, where a parcel fetched Rs 2.37 bn per acre. SBICAPS is the investment banking arm of the State Bank of India and provides project advisory, capital markets and structured finance services. Observers said the selection raises questions about independence and overlap with earlier work.

As per the agreement with Larsen & Toubro, the State agreed to refinance debts of Rs 135.39 bn held by L&T Metro, triggering the Rs 840 mn upfront payment under terms set by IRFC. The appointment was announced after the Chief Minister met Union ministers in New Delhi to discuss loan delays and Phase II, and the Chief Minister's Office named a senior Union official and the special chief secretary for municipal administration and urban development to coordinate the study. The report from SBICAPS will inform decisions by the State and the Centre on the takeover and future financing.

The Telangana government has engaged SBI Capital Markets Limited (SBICAPS) to reassess valuation and financing of Hyderabad Metro Rail Phase I despite a similar exercise last year. The appointment revives scrutiny over a prior valuation by IDBI Capital and the Rs 840 mn upfront fee paid to release the first loan tranche. The consultant will be asked to raise loans for the takeover and select lending agencies. Earlier due diligence by IDBI Capital and Delhi Metro Rail's consultancy had estimated Phase I assets at between Rs 205.44 bn and Rs 221.02 bn. The move follows delays in disbursement by the Indian Railway Finance Corporation and questions over who will bear interest costs of nearly Rs 25 mn a day on takeover loans. The study will also examine expansion and financing for Metro Phase II. The appointment of SBICAPS came amid tensions with State Bank of India after the bank secured a stay from the Telangana High Court on the Raidurg land auction, where a parcel fetched Rs 2.37 bn per acre. SBICAPS is the investment banking arm of the State Bank of India and provides project advisory, capital markets and structured finance services. Observers said the selection raises questions about independence and overlap with earlier work. As per the agreement with Larsen & Toubro, the State agreed to refinance debts of Rs 135.39 bn held by L&T Metro, triggering the Rs 840 mn upfront payment under terms set by IRFC. The appointment was announced after the Chief Minister met Union ministers in New Delhi to discuss loan delays and Phase II, and the Chief Minister's Office named a senior Union official and the special chief secretary for municipal administration and urban development to coordinate the study. The report from SBICAPS will inform decisions by the State and the Centre on the takeover and future financing.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code