KTR seeks response on Telangana govt's decision to take over Hyderabad Metro Phase 1 project

Hyderabad (Telangana) [India], September 26 (ANI): Bharat Rashtra Samithi (BRS) Working President K Taraka Rama Rao (KTR) criticised the Telangana government’s decision to take over the Hyderabad Metro Phase 1 from L&T, expressing concerns over the sudden move without proper consultation or evaluation.

Speaking with ANI, KTR questioned the logic behind the government assuming ₹15,000 crore of debt, highlighting that L&T was contractually obligated to run the metro till 2070 under a public-private partnership (PPP) model.

KTR said, “This is a troubling decision. There is no logic. While L&T was contractually obligated to Telangana to run this metro in a public-private partnership mode till 2070, I don’t understand why the state government has suddenly taken the decision without any consultation, without cabinet approval, without any cabinet sub-committee being formed, or any kind of evaluation. They have decided to pay Rs 15,000 crores and assume the entire burden of debt onto the state exchequer. The question we are asking the state government is that when the debt of this private company, which was going to sit on their balance sheet till 2070, was contractually obligated, what made you take the decision in a hurry and levy the burden of Rs 15000 crores on the state exchequer?”

L&T cited mounting losses and operational complexities, declining to participate in Phase 2, leading to the government takeover. This marks the end of the Public-Private Partnership (PPP) model with L&T Metro Rail Hyderabad.

L&T reported a net loss of ₹626 crore in FY25 from the metro project, prompting their request to exit.

He further said that L&T was repeatedly insulted by the Chief Minister, Revanth Reddy. KTR accused Chief Minister Revanth Reddy of harbouring vendetta, sabotaging the Airport Metro, and targeting L&T to allegedly capture 280 acres of valuable Metro land.

“Initially, the Airport Metro Express was cancelled. Immediately, the L&T CFO was threatened with being sent to jail. L&T’s bids in other works have also been cancelled. Even when L&T came forward and offered to repair the Medigadda Barrage, the state government was reluctant. There seems to be some hidden agenda,” he further said.

He further said, “There is a Central Metro Act and the Union Government had given a Viability Gap Funding of Rs 1450 crores for Metro Phase 1 so the Central government has the right to ask what was the need for taking the burden of a private company on the state’s balance sheet.”

Hyderabad Metro Phase 1 spans 67.21 km with 59 stations across three corridors (Red, Green, Blue Lines), operational since 2017-2020. The takeover clears a path for central government approval of Phase 2 expansion (163 km across eight corridors). (ANI)

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