Overview
- Under the settlement, the state will assume about ₹13,000 crore of project debt and pay ₹2,000–₹2,100 crore to L&T as a one-time equity payout, subject to Cabinet approval and statutory processes.
- L&T declined to join Phase 2 and refused a definitive integration pact on operations and revenue sharing, instead offering to divest its entire Phase I stake while flagging ₹2,100 crore still due under a 2022 supplementary agreement.
- Officials indicate an operational handover in roughly six to twelve months, with outsourced operator Keolis expected to continue under its contract running through November 2026.
- Finance officials warn the takeover could strain borrowing limits under FRBM norms, with reported headroom of about ₹8,109 crore this half-year and plans to seek central relaxations and explore interim funding options.
- Opposition leader K. T. Rama Rao condemned the move as fiscally reckless and demanded probes, while the government says the shift is needed to unlock Centre clearance for the 163-km Phase 2 expansion.