Hyderabad, March 28 The Telangana Legislative Assembly passed a resolution on Saturday endorsing the state government's decision to take over Phase-1 of the Hyderabad Metro Rail Project from infrastructure major L&T.
Chief Minister A Revanth Reddy, who moved the resolution, said that Phase-1 of the project covers 69 km, and the state government submitted proposals to the Centre to develop Phase - II A and Phase-II B of the project in 76.4 km and 86.1 km respectively.
The state government has taken into consideration the technical, legal, and administrative challenges encountered while undertaking Phase-II A and Phase-II B with the joint partnership of the Central and state governments, given that Phase-I is being managed by a private entity, he said.
The state government has decided to take over Phase-I from L&T through the Hyderabad Metro Rail Ltd (HMRL) in order to address the issues raised by the Centre, he said.
The chief minister sought the endorsement of the House for the state government's decision to take control of Phase-I of the project.
The state government has drawn up plans to improve public transport in Hyderabad and to make the city internationally recognized, he said, thanking the members for their unanimous support for the resolution.
Congress MLA Balu Naik, who was presiding over the session, announced the adoption of the resolution by the House.
BRS MLA T Harish Rao, who spoke immediately after the voting on demands for grants for 2026-27, said that the views of BRS were not taken into consideration. He said that the resolution was not unanimous.
The Telangana government agreed in 2025 to take over Phase-I of the Hyderabad Metro Rail project from L&T Group by paying Rs 2,000 crore for the equity stake in the concessionaire L&T Metro Rail Hyderabad Ltd.
It was agreed that the state government would also take over the company's debt of Rs 13,000 crore, official sources had said. L&T has approximately 90 per cent equity in the project.
The infrastructure major had expressed its desire to offload its stake in the Metro Rail project – about 70 km – to either the state or the central government through a new Special Purpose Vehicle (SPV), citing operational and accumulated losses.