Telangana Government Fast-Tracks Metro Rail Takeover from L&T

The Telangana government is set to complete its takeover of Hyderabad Metro Rail from Larsen & Toubro by the end of the financial year. The process is part of a strategic move following L&T's decision to offload its stake due to operational losses and accumulated debts.

The Telangana government is expediting the acquisition of the Hyderabad Metro Rail from the infrastructure giant Larsen & Toubro (L&T), aiming for completion by the fiscal year's end. Chief Secretary K Ramakrishna Rao instructed officials during a high-level meeting to ensure a smooth and swift transition.

Rao emphasized adherence to existing agreements, tasking the transaction advisor IDBI with the quick finalization of its report to aid the process. Cooperation from L&T was noted as essential, while Hyderabad Metro Rail Limited's Managing Director Sarfaraz Ahmad was directed to draft proposals for operations and maintenance.

Under the acquisition terms, the state government will pay Rs 2,000 crore for L&T's equity and assume Rs 13,000 crore in debt. This takeover comes as L&T seeks to divest its stake amidst operational challenges and financial losses.

(With inputs from agencies.)