Telangana secures ₹13,600 crore refinancing deal for Hyderabad Metro Phase-I

The Telangana government has secured ₹13,600 crore refinancing for the Hyderabad Metro Rail (HMR) Phase-I project through the Indian Railway Finance Corporation (IRFC), strengthening the financial foundation for future metro expansion and sustainable public transport development.

The agreement was formally signed in New Delhi between IRFC, L&T Metro Rail Hyderabad Limited and Hyderabad Metro Rail Limited. The event was attended by IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao.

The Chief Secretary said the ₹13,600 crore refinancing package would provide significant financial relief to the metro project and enhance its long-term financial sustainability. By replacing high-cost debt with lower-cost long-term financing, the refinancing is expected to reduce the project’s debt burden and support future expansion plans.

The ₹13,600 crore facility would be utilised for refinancing existing liabilities, including non-convertible debentures, commercial papers and working capital loans. The move is expected to provide an orderly exit for existing lenders while significantly improving the project’s financial health.

The loan has been structured with a repayment tenure of 20 years under a quarterly payment mechanism. The transaction is backed by strong credit enhancement measures, including an unconditional payment guarantee from the Telangana government, State guarantees and an RBI-supported direct debit mandate.

The Chief Secretary explained the government’s commitment under the leadership of Chief Minister A. Revanth Reddy to develop an efficient, sustainable and people-friendly public transportation system in Hyderabad.

The city was emerging as a major driver of India’s economic growth and said expansion of the metro connectivity was essential to match the city’s rapid urban development. The metro rail system, he added, was playing a key role in reducing traffic congestion and improving the quality of urban life.

The refinancing comes after the Telangana government, through HMRL, acquired 100% stake in L&T Metro Rail (Hyderabad) Limited from Larsen & Toubro Limited, making Hyderabad Metro a fully government-owned strategic public transport asset.

Spread across 69.2 kilometres with three corridors and 57 stations, Hyderabad Metro Phase-I is among the largest metro rail projects developed under the public-private partnership model in India. The network currently serves over five lakh passengers daily.

HMRL Managing Director Sarfaraz Ahmad, Joint Managing Director Shivendra Pratap, Special Secretary for Coordination of Central Projects and Sponsored Schemes Advait Kumar Singh, L&T Metro Rail Hyderabad representative K. V. B. Reddy and CFO A. V. R. Srinivasa Sharma were among present.