Telangana Cabinet Approves Metro Takeover From Larsen & Toubro

28 Feb 2026 CW Team

A Cabinet Sub-Committee that was constituted to examine the acquisition and the feasibility of the Metro submitted its report, which was discussed in detail during the meeting. The government resolved to act on the committee recommendations and to begin procedural and legal steps to effect the transfer. Ministers indicated that administrative and technical arrangements will be set in motion without delay.

The Phase-I network spans 69 km and has been operated by Larsen & Toubro since its construction and commissioning, providing a substantial share of the city’s rapid transit capacity. The acquisition covers assets and attendant liabilities and is intended to secure uninterrupted services and to align operations with public transport planning for Hyderabad. Officials will oversee handover protocols and integration with existing state transport agencies.

The financial implication of the transaction at about Rs150 bn will be examined in terms of budgetary impact and funding arrangements by the state finance department and the cabinet. The government will prepare a financing plan and assess options that may include reallocations within the fiscal framework and staged payments. Fiscal prudence and continuity of services were stated as guiding considerations.

Further deliberation on the subject is expected during upcoming sessions of the State Assembly if required, and the cabinet indicated readiness to furnish detailed proposals to legislators. No additional operational specifics were released immediately, and further announcements are likely as procedural steps progress. The state will continue to monitor the transition to ensure service stability for commuters.

Telangana Cabinet led by Chief Minister A Revanth Reddy approved the takeover of the 69 km Hyderabad Metro Rail Phase-I network from Larsen & Toubro by paying about Rs150 billion (bn), including liabilities, and decided to initiate necessary steps immediately. The decision was taken at a meeting on Monday night. The move transfers operational control of the Phase-I network to the state government. A Cabinet Sub-Committee that was constituted to examine the acquisition and the feasibility of the Metro submitted its report, which was discussed in detail during the meeting. The government resolved to act on the committee recommendations and to begin procedural and legal steps to effect the transfer. Ministers indicated that administrative and technical arrangements will be set in motion without delay. The Phase-I network spans 69 km and has been operated by Larsen & Toubro since its construction and commissioning, providing a substantial share of the city’s rapid transit capacity. The acquisition covers assets and attendant liabilities and is intended to secure uninterrupted services and to align operations with public transport planning for Hyderabad. Officials will oversee handover protocols and integration with existing state transport agencies. The financial implication of the transaction at about Rs150 bn will be examined in terms of budgetary impact and funding arrangements by the state finance department and the cabinet. The government will prepare a financing plan and assess options that may include reallocations within the fiscal framework and staged payments. Fiscal prudence and continuity of services were stated as guiding considerations. Further deliberation on the subject is expected during upcoming sessions of the State Assembly if required, and the cabinet indicated readiness to furnish detailed proposals to legislators. No additional operational specifics were released immediately, and further announcements are likely as procedural steps progress. The state will continue to monitor the transition to ensure service stability for commuters.

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