Telangana Government secures up to Rs.13,600 crore refinancing support for Hyderabad Metro Rail

The Telangana government has secured a refinancing facility of up to Rs 13,600 crore from IRFC for the Hyderabad Metro Rail project. The move is expected to reduce finance costs, improve financial stability and support future expansion of the metro network

Hyderabad: The State government has secured a term loan refinancing facility of up to Rs 13,600 crore from Indian Railway Finance Corporation Limited (IRFC) for the Hyderabad Metro Rail project.

An agreement was signed between IRFC, Hyderabad Metro Rail Limited (HMRL) and L&T Metro Rail (Hyderabad) Limited (LTMRHL) in New Delhi on Monday. IRFC CMD and CEO Manoj Kumar Dubey and Chief Secretary K Ramakrishna Rao were present on the occasion.

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The Chief Secretary said the refinancing support from IRFC would provide major financial relief to L&T Metro Rail (Hyderabad) Limited and place the project on a stronger long-term financial footing. The arrangement would help reduce finance costs, improve financial flexibility and support the government’s plans for future expansion of the Hyderabad Metro network, he explained.

The Rs 13,600 crore facility will be used to refinance existing debt obligations, including non-convertible debentures, commercial papers and working capital loans. The arrangement will provide an orderly exit to existing lenders and significantly improve the long-term financial sustainability of the Hyderabad Metro project, a press release from the government said.

The facility has been structured over a 20-year tenure with quarterly repayments. It replaces higher-cost debt with competitively priced long-term rupee financing. The transaction is supported by an unconditional and irrevocable undertaking by the Telangana government for servicing all dues payable to IRFC, a State government guarantee and an RBI-backed direct debit mandate.

Hyderabad Metro Rail Phase-I, spread over 69.2 kilometres across three corridors with 57 stations, is among the largest metro rail projects developed under the public-private partnership model. The network currently caters to over five lakh passenger journeys daily and has emerged as a key pillar of sustainable public transport in Hyderabad.

This refinancing support is expected to strengthen the project’s financial viability and enable the State government to accelerate the planned expansion of Hyderabad Metro, including new corridors, improved connectivity to emerging growth areas and enhanced last-mile connectivity across the metropolitan region.