News Brief

Hyderabad Metro Phase-I: L&T Seeks Government Takeover Amid Mounting Losses And Phase-II Challenges

Arjun BrijSep 14, 2025, 11:35 AM | Updated 11:35 AM IST
Hyderabad Metro. (HMRL)

Hyderabad Metro. (HMRL)


Larsen and Toubro (L&T) has formally conveyed its willingness to hand over the Hyderabad Metro Rail Phase-I network to the government, citing unsustainable losses and looming operational complications, according to a New Indian Express report.

In a letter to Union Housing and Urban Affairs Minister Manohar Lal Khattar, the infrastructure giant requested that either the Centre or the Telangana government assume control of the 69.2 km system covering three corridors.

Once hailed as India’s largest public-private partnership (PPP) project, the Metro now faces hurdles as the state pushes forward with Phase-II expansion.

The proposed new routes will overlap with existing Phase-I tracks, raising concerns over cost-sharing, revenue division, and operational clarity.

L&T has argued that continued financial strain makes it unfeasible to sustain Phase-I while also integrating with the upcoming corridors.

According to the report, Chief Minister A Revanth Reddy had earlier met Khattar in Delhi to discuss the complexities around both phases.


L&T reportedly cautioned that running Phase-I trains on Phase-II tracks or vice versa would trigger cost and revenue-sharing issues.

The company suggested that the systems either operate independently or be fully taken over by the government.

Khattar is understood to have pressed the state to explain how it plans to ensure smooth passenger movement on Phase-II routes, which will extend services to Miyapur–Patancheru, LB Nagar–Hayathnagar, and MGBS–Chandrayangutta.

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