Overview

• Following talks between Chief Minister A. Revanth Reddy and L&T CMD S. N. Subrahmanyan, the agreement will go to the State Cabinet, with legal, financial and operational terms to be worked out.
• The state will assume roughly ₹13,000 crore of project debt and make a one‑time ₹2,000–₹2,100 crore payment to acquire L&T’s equity and end private ownership of Phase I.
• L&T declined to be an equity partner in Phase II and would not sign a definitive integration pact, a requirement the Centre has cited since November 2024 for processing Phase II.
• During negotiations, L&T initially sought about ₹5,900 crore for its equity and cited ₹2,100 crore pending under a 2022 supplementary agreement before agreeing to a lower settlement.
• Officials expect an operational handover within six to twelve months with Keolis likely to continue O&M, as the state advances Phase II proposals covering about 163 km.