File picture of the Hyderabad metro rail | Photo Credit: NAGARA GOPAL

The Telangana Government is likely to extend the April 30, 2026 deadline for the takeover of Hyderabad Metro Rail (HMR) from L&T Metro Rail Hyderabad.

According to sources, the Government was unable to finalise the knotty financial arrangements to complete the deal, besides  some associated official procedures. 

In February, the State cabinet approved the acquisition of 100 per cent equity stake in Phase-I of the project. The transaction includes approximately ₹13,000 crore in existing debt, along with payments toward L&T’s equity investment. The key aspects of the takeover include financial restructuring, transfer of assets and liabilities, and continuity of metro operations.

The initial deadline for the takeover was fixed as March 31, 2026, which was later extended till April 30, 2026.

The State Government had approached the Indian Railway Finance Corporation (IRFC) for a ₹13,000-crore loan, which is yet to be processed, including the modalities of the interest rates. 

Some areas of the technical assessment and evaluation of operational performance are yet to be evaluated by the Government. Delhi Metro International Ltd (DMIL) has been assigned the task of conducting technical assessments and evaluating system performance and operational health.

“Going by the present status of the deal, extension of the deadline looks imminent. If the Government is able to complete it without extension, it would be like a miracle,’’ a senior official involved in the process said.

Published on April 16, 2026