Hyderabad Metro Rail operations are set to accelerate as the government prepares to take full control of the Metro first phase from L&T by March 31, 2026. This move follows the announcement by L&T in September 2025 to exit the public-private partnership (PPP) model of the first-phase project.
Hyderabad Metro MD Sarfaraz Ahmed told media that the government is fast-tracking financial and legal studies under IDBI Consultancy. A technical consultancy firm will soon be appointed to study metro operations, technical systems, and provide a comprehensive report. The appointment is expected to be completed in the next 10–15 days.
Currently, Keolis operates three metro corridors, overseeing drivers, technical staff, and maintenance. While the existing contract may continue for another year, the government plans to fully integrate both the first and upcoming second phases under government management.
Assets and Land Takeover
Under the agreement, government will acquire lands, buildings, and malls allotted to L&T for transit-oriented development. Presently, 212 acres of land are available. Revenue from selling properties and malls will help offset the cost.
The government is required to pay L&T ₹2,000 crore, in addition to covering another ₹13,000 crore in bank loans. Operational expenses for metro management, whether continued with Keolis or another agency, will also be borne by the government. Plans for new coaches based on passenger demand are included in the proposals.
Second Phase Progress
The government of the country has given its consent to the second stage of the project and works are to be begun at the same time on all corridors. The 7.5 km road widening from MGBS to Chandrayangutta is almost done with around 700 & 880 properties purchased and vacated. Very little land needs to be acquired for the other corridors which guarantees no hindrances for the second phase.
Sarfaraz Ahmed pointed out that the government seizing the first phase will be a step forward for the building of the second phase and will thus bring about the entire Hyderabad Metro expansion being done in the scheduled time.
