Hyderabad Metro Rail Limited.

Telangana Secures ₹13,600 Crore Boost for Hyderabad Metro: A Major Leap for Urban Mobility

In a landmark development for Hyderabad’s transport infrastructure, the Government of Telangana has secured up to ₹13,600 crore refinancing support from Indian Railway Finance Corporation (IRFC) for the Hyderabad Metro Rail project. The move is set to significantly strengthen the financial foundation of one of India’s largest metro systems developed under the public private partnership model.

The agreement was signed between IRFC, Hyderabad Metro Rail Limited (HMRL), and L&T Metro Rail Hyderabad Limited (LTMRHL) in the presence of Telangana Chief Secretary Shri K. Ramakrishna Rao and IRFC CMD & CEO Shri Manoj Kumar Dubey on May 25, 2026 in New Delhi.

Shri K. Ramakrishna Rao thanked the Government of India, IRFC team, the L&T team, HMRL team and all concerned officials for their seamless coordination and support in completing this important process.

The programme was also attended by Shri Sarfraz Ahmad, IAS, Managing Director, HMRL; Shri Shivendra Pratap, IAS, Joint Managing Director, HMRL; Shri Adwait Kumar Singh, IAS, Special Secretary, Coordination, GoI Projects & CSS; Shri K.V.B. Reddy, representing L&T Metro Rail (Hyderabad) Limited; Shri A.V.R. Srinivasa Sharma, CFO, L&T HMRL; and other senior officials from IRFC, HMRL and concerned departments.

A Stronger Financial Backbone for Hyderabad Metro

The refinancing facility will be used to replace existing high-cost debt, including non-convertible debentures, commercial papers, and working capital loans, with competitively priced long term rupee financing.

Structured over a 20-year tenure with quarterly repayments, the arrangement is expected to:
- Reduce financing costs
- Improve long-term financial flexibility
- Provide an orderly exit for existing lenders
- Strengthen the overall sustainability of the Metro project

The agreement is further backed by a Telangana Government guarantee, an unconditional undertaking for servicing dues, and an RBI supported direct debit mandate, ensuring strong financial security for the project.

Supporting a Fast-Growing Global City

Speaking on the occasion, Chief Secretary Shri K. Ramakrishna Rao highlighted that under the leadership of Hon’ble Chief Minister Shri A. Revanth Reddy, the Telangana Government remains committed to creating efficient, sustainable, and commuter friendly public transport infrastructure.

Hyderabad has rapidly emerged as one of India’s leading economic growth centres. As the city expands, stronger metro connectivity is becoming essential not only for reducing traffic congestion but also for improving quality of life and supporting long term economic growth.

The refinancing support is expected to provide a major boost for future expansion plans, including:
- New metro corridors
- Better connectivity to emerging growth areas
- Enhanced last mile connectivity across the metropolitan region

A Defining Moment for Future Expansion

The Telangana Government views this agreement as more than a financial restructuring exercise. It is being seen as a critical step towards building a stronger foundation for upcoming phases of Hyderabad Metro and accelerating the vision of seamless urban mobility.

The Chief Secretary also acknowledged the support and guidance extended by Hon’ble PM of India Shri Narendra Modi; Shri Manohar Lal Khattar, Hon'ble Minister, MoHUA and Shri Kishan Reddy, Hon'ble Minister for Coal and Mines, Govt. of India, for supporting Hyderabad’s infrastructure ambitions.

Towards a Smarter and More Sustainable Hyderabad

As Hyderabad continues its journey towards becoming a world class metropolitan city, investments in modern public transport systems are becoming increasingly vital. This refinancing support not only strengthens the Metro’s financial future but also reinforces confidence in Hyderabad’s long term urban development vision.

With stronger financial stability, upcoming expansion plans, and growing commuter demand, Hyderabad Metro is poised to play an even larger role in shaping the city’s future mobility ecosystem.