Overview

• The state plans to assume about Rs 13,000 crore of project debt and pay roughly Rs 2,000 crore to L&T as a one‑time equity settlement, subject to Cabinet approval and legal clearances.
• L&T confirmed it will exit the project and declined to join Phase‑2 as an equity partner, citing concerns over seamless operations and revenue‑ and cost‑sharing.
• Chief Minister A. Revanth Reddy and L&T CMD S. N. Subrahmanyan reached the in‑principle understanding after talks aimed at expediting Union approval for the proposed Phase‑2 corridors.
• The Centre had sought a definitive operational‑integration pact between Phase‑1 and the government‑run Phase‑2, a condition that stalled approvals since November 2024.
• L&T flagged an outstanding Rs 2,100 crore due under a 2022 supplementary agreement, as discussions continue on valuation, debt transfer terms and the transition to state ownership.