L&T Metro Rail Hyderabad is likely to avail a term loan of around Rs 13,615 crore from Indian Railway Finance Corporation (IRFC), according to a Redbox report.
The loan is expected to be used to refinance the outstanding debt of L&T Metro Rail Hyderabad Ltd as part of the broader transition of Hyderabad Metro’s Phase I network from the public-private partnership model to full state ownership.
As per earlier reports, the proposed refinancing relates to the 69-km Hyderabad Metro Phase I network. The debt position was expected to be considered as of April 30, 2026.
The loan is reportedly structured with a tenure of 20 years and is expected to be serviced through metro revenues. It is also understood to be backed by a Telangana government guarantee.
The transaction is part of the Telangana government’s larger plan to acquire 100% equity in L&T Metro Rail Hyderabad through Hyderabad Metro Rail Ltd. The overall deal value has been reported at around Rs 15,000 crore, including debt refinancing and equity-related payments.
The funding from IRFC is expected to help replace higher-cost commercial borrowings with longer-tenure financing, easing the debt burden linked to the metro project.
However, the headline wording remains important. While the latest report states that L&T Metro Rail Hyderabad will avail the loan, earlier reports indicated that the state entity HMRL may avail the IRFC loan as part of the takeover process to refinance L&TMRHL’s outstanding debt.
The transaction marks a major shift for Hyderabad Metro, moving it from an L&T-led PPP structure toward complete state ownership. More formal details are awaited.
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