In a landmark decision, the Telangana government has initiated the process to transition the Hyderabad Metro Rail into a fully state-owned entity. Currently operating under a Public-Private Partnership (PPP) with L&T, the government has moved to acquire 100% equity from the infrastructure giant for a staggering Rs 15,000 crore. The acquisition process is slated for completion by April 30, with the state government assuming absolute control from May 1. This strategic move aims to stabilize the metro’s finances and expedite the upcoming Phase 2 expansion projects.
As part of this transition, the government has reconstituted the Board of Directors with top-tier bureaucratic leadership. Chief Secretary K. Ramakrishna Rao has been appointed as the Chairman of the newly formed board. Other key appointments include Senior IAS officer Jayesh Ranjan and DGP Shivadhar Reddy as board members, while Sarfaraz Ahmad will continue his tenure as the Managing Director (MD). This reshuffle signals the government’s intent to bring senior administrative and security oversight into the urban transport framework.
To facilitate this massive buyout, the government has approved a term sheet from the Indian Railway Finance Corporation (IRFC) for a loan of Rs 13,615 crore. The Special Chief Secretary of the Urban Development Department has been authorized to execute the guarantee documents and undertaking letters. Furthermore, the HMRL MD has been empowered to finalize staffing agreements with L&T and handle the legal transfer of assets. This shift is expected to grant the government more flexibility in managing fares, providing subsidies, and streamlining connectivity across the Greater Hyderabad region.
