Telangana Cabinet Approves Hyderabad Metro Takeover and Phase II Push

28 Feb 2026 CW Team

Telangana Cabinet, led by Chief Minister A Revanth Reddy, approved the takeover of the 69 km Hyderabad Metro Rail (HMR) Phase I network from Larsen & Toubro (L&T) by agreeing to pay about Rs150 bn, including liabilities, and directed the administration to immediately initiate the necessary steps to effect the transfer. The decision was taken at a meeting held on Monday night and was described as a major step towards consolidating urban transport in Hyderabad. The Cabinet instructed officials to begin preparatory work for transaction execution and operational transition.

A Cabinet Sub-Committee constituted to examine the acquisition and the feasibility of the Metro submitted its report, which was discussed in detail by Ministers and senior officials. The panel's appraisal addressed legal, financial and operational aspects and informed the Cabinet's decision to proceed. The government indicated that further technical and financial due diligence would be completed as part of the implementation process.

The government also cleared a renewed push for Phase II of the metro programme and resolved to take forward necessary planning and coordination to enable expansion. Officials were asked to align Phase II proposals with broader urban mobility objectives and to ensure integration with existing transport systems. Emphasis was placed on minimising disruption to commuters during any transfer of responsibilities and on maintaining service standards.

Administrative actions to be launched immediately include formalising the acquisition terms, addressing outstanding liabilities and arranging stakeholder consultations with the operator and regulators. The Cabinet indicated that timelines and financial modalities would be presented to the Assembly where further deliberation may be required. The move is expected to centralise oversight of the HMR and to provide a clear framework for future metro development and governance.

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