Overview

• Under an in-principle settlement, the state will assume about ₹13,000 crore of project debt and pay roughly ₹2,000–2,100 crore to L&T, with detailed terms to go before the Cabinet.
• L&T declined to join Phase 2 or sign a definitive operational-integration pact, citing concerns over seamless operations and revenue/cost sharing, after posting about ₹625–626 crore in FY25 losses on the project.
• Officials indicated a handover of Phase I operations to the government within six to twelve months, with Keolis’ operations and maintenance contract likely continuing through its November 2026 term.
• The takeover is intended to address the Centre’s insistence on integration between the privately built Phase I and the proposed 163-km Phase 2A/2B before advancing approvals.
• Financing the buyout poses near-term strain under FRBM borrowing limits, prompting plans to monetise Metro land at Raidurg and seek central relaxations, as opposition leaders led by K. T. Rama Rao attack the decision and call for a probe.