Telangana Secures Rs 13,600 Cr Refinancing for Hyderabad Metro Rail Phase-1
New Delhi, May 25 (TNT):The Telangana Government has secured ₹13,600 crore refinancing for Hyderabad Metro Rail Phase-1 through the Indian Railway Finance Corporation Limited (IRFC), marking a major financial milestone for the state’s urban transport sector.
Agreement documents were signed in New Delhi on Monday between IRFC, L&T Metro Rail Hyderabad Limited and Hyderabad Metro Rail Limited (HMRL).
The event was attended by IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao.
Speaking on the occasion, Ramakrishna Rao said the Telangana Government under Chief Minister A. Revanth Reddy was committed to developing an efficient, sustainable and people-centric public transport system in Hyderabad.
He stated that Hyderabad was emerging as a major centre of economic growth and metro expansion was crucial for reducing traffic congestion and improving urban quality of life.
According to officials, the ₹13,600 crore refinancing will provide substantial financial relief to the metro project by replacing high-interest borrowings with lower-cost long-term financing.
The facility has been structured for a 20-year tenure with quarterly repayment schedules.
Officials said the refinancing came into effect after the Telangana Government, through HMRL, acquired 100 per cent stake in L&T Metro Rail Hyderabad Limited from Larsen & Toubro Limited, making Hyderabad Metro a fully government-owned strategic public transport asset.
The funds will be utilised for refinancing existing debt obligations, including non-convertible debentures, commercial papers and working capital liabilities.
The transaction is backed by multiple credit enhancement mechanisms, including an unconditional payment guarantee from the Telangana Government, a state guarantee and an RBI-supported direct debit mandate.
Hyderabad Metro Rail Phase-1, developed under the public-private partnership model, spans 69.2 kilometres across three corridors with 57 stations and currently serves over five lakh passengers daily.
Officials said the refinancing would strengthen the project’s financial sustainability and support future metro expansion plans, including new corridors, better connectivity to emerging areas and improved last-mile transport facilities.
Among those present at the event were HMRL Managing Director Sarfaraz Ahmad, Joint Managing Director Shivendra Pratap, Special Secretary Advait Kumar Singh, L&T Metro Rail Hyderabad representative K.V.B. Reddy and CFO A.V.R. Srinivasa Sharma.
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