TG secures Rs 13,600 Crore funding boost for Hyd Metro

metro india news  I hyderabad

In a major boost to urban transportation infrastructure, the Government of Telangana has secured a term loan refinancing facility of up to ₹13,600 crore from Indian Railway Finance Corporation (IRFC) for the Hyderabad Metro Rail project. The refinancing arrangement is expected to significantly strengthen the financial sustainability of the metro project while paving the way for future expansion and enhanced connectivity across Hyderabad.

The agreement was signed in New Delhi on Monday between IRFC, Hyderabad Metro Rail Limited and L&T Metro Rail Hyderabad Limited in the presence of IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao.

Speaking on the occasion, Chief Secretary K. Ramakrishna Rao stated that Telangana Government remains committed to strengthening urban mobility infrastructure and providing sustainable, efficient and commuter friendly public transport facilities in Hyderabad.

He noted that Hyderabad has emerged as one of India’s fastest growing economic hubs and that strengthening metro rail connectivity is critical to supporting the city’s rapid growth, reducing traffic congestion and improving the quality of urban life.

The refinancing support from IRFC is expected to provide substantial financial relief to L&T Metro Rail Hyderabad Limited by replacing higher cost borrowings with competitively priced long term rupee financing. The facility will refinance existing debt obligations, including non convertible debentures, commercial papers and working capital loans, while also enabling an orderly exit for existing lenders.

Structured over a 20 year tenure with quarterly repayments, the refinancing package is backed by an unconditional and irrevocable undertaking from the Government of Telangana, along with a State Government guarantee and an RBI backed direct debit mandate.

The Chief Secretary thanked officials from IRFC, HMRL and L&T for their coordinated efforts in successfully finalising the refinancing process.

Spread across 69.2 kilometres with three corridors and 57 stations, Hyderabad Metro Rail Phase I is among the largest metro rail projects developed under the public private partnership model in India. The metro network currently serves more than five lakh passenger journeys every day and has become a key pillar of sustainable public transportation in Hyderabad.

The Telangana Government stated that the refinancing agreement would strengthen the project’s long term viability and support future expansion plans, including new metro corridors, improved connectivity to emerging growth centres and enhanced last mile transportation across the Hyderabad metropolitan region.