Hyderabad Metro takeover misses its September deadline as funding stalls

Hyderabad Stories published this report on 11 October 2026 as part of a review of September 2026. It was drafted with AI assistance from the reports listed at the end, each read in full; quotations are as those reports printed them. Photo above — The Hyderabad Metro Red Line viaduct at Koti.

The state's takeover of Hyderabad Metro's first phase from L&T — approved in February and signed in April — had still not closed by late September 2026.

According to a Deccan Chronicle report of 22 September, the state was "yet to finalise the debt funding required for the transaction". The takeover had been due by June, then extended to 30 September, and the government was expected to seek a further extension, possibly to 31 December.

The state agency must pay about Rs 14,600 crore for L&T's equity and refinance roughly Rs 13,600 crore of existing debt, the report said. SBI Capital Markets had not finalised the financing, and the Indian Railway Finance Corporation, which initially agreed to fund the deal, "has raised objections to certain aspects of the proposed funding structure". The Cabinet was to consider how to raise the money at its meeting on 1 October.

The takeover matters beyond its price: the Union government has made a single owner for the whole network the condition for building Phase-II.

Sources

• Cabinet to meet on Oct 1; Metro takeover funds and Indiramma on agenda — Deccan Chronicle, 22 September 2026