Hyderabad Metro Phase 1 Takeover: Telangana Sets March 31 Deadline; When Will Phase 2 Get Approval?

The Telangana government has set March 31 as the deadline to take over Hyderabad Metro Rail Phase 1 from Larsen & Toubro (L&T), intensifying efforts among officials to complete the transition within the stipulated timeline.

With the date approaching, Hyderabad Airport Metro Rail Limited (HAMRL) is accelerating audits and compiling detailed legal and financial reports to ensure that all mandatory procedures are finalised on time.

Centre's Approval For Phase 2 Hinges On Takeover Progress

The push to complete the takeover has gained urgency because the Centre has indicated that clearance for Metro Phase 2 will be evaluated only after the state submits comprehensive documentation related to the Phase 1 acquisition. This has prompted officials to fast-track formalities and avoid any delays.

For Phase 2, the state has already earmarked ₹24,269 crore for 76.4 km spanning five corridors under Part-A, while ₹5,19,579 crore has been proposed for 86.1 km across three corridors under Part-B. Both the Centre and the state have agreed to implement the entire project as a 50:50 joint venture, highlighting the scale and importance of the upcoming expansion.

State Moves To Take Full Control After L&T Exit Decision

L&T had previously informed the government of its intention to step away from metro operations, citing mounting financial losses. In response, the state decided to assume complete control of the Phase 1 network.

Under the arrangement, the government will pay ₹2,000 crore towards L&T's equity share and also take responsibility for clearing loans worth ₹13,000 crore borrowed from multiple banks. At the same time, authorities are conducting fast-tracked audits of lands and assets allocated to L&T under the Transit-Oriented Development (TOD) framework to ensure transparency in the transfer.

IDBI Consultancy Services To Lead Detailed Evaluation

To support the takeover within the set deadline, HAMRL has commissioned a comprehensive study overseen by IDBI Consultancy Services. The assessment will examine financial, technical and legal aspects of the transition, helping the state navigate complexities tied to one of the country's largest metro projects.

Officials remain cautious about whether every procedural requirement, including auditing and legal due diligence, can be completed within the tight schedule, but preparations are underway to meet the March 31 target without compromising compliance.