The Telangana government has agreed to take over Phase 1 of the Hyderabad Metro Rail project, absorbing ₹13,000 crore in debt and paying ₹2,000 crore to Larsen & Toubro Ltd. as it pushes for central clearance on Phase 2.

The decision, finalized after high-level talks between Chief Minister A. Revanth Reddy and L&T Chairman and MD S.N. Subrahmanyan on Thursday, marks a strategic move by the state to unblock progress on the long-stalled metro expansion. Advertisement

Phase 1 of the metro, operated by L&T’s subsidiary L&T Metro Rail (Hyderabad) Ltd, has been a financial strain on the company. L&T’s net loss from the project widened to ₹626 crore in FY25, while operational and other income dropped 21% to ₹1,109 crore, according to its latest annual report.

With mounting losses and a lack o

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