The Telangana government on Monday secured a Rs 13,600 crore refinancing agreement from the Indian Railway Finance Corporation Ltd (IRFC) for the Hyderabad Metro Rail Project. The agreement was signed in Delhi among IRFC, L&T Metro Rail (Hyderabad) Ltd, and Hyderabad Metro Rail Ltd (HMRL).
Financial relief and economic stability
Chief Secretary K Ramakrishna Rao, who attended the event in the national capital, stated that the Rs 13,600 crore refinancing would provide considerable financial relief to the Hyderabad Metro Rail project, strengthening its long-term economic stability, as per a state government release.
Debt reduction and expansion plans
The refinancing will help reduce the current debt burden and support future expansion plans of the metro project. Rao emphasized that the state government, under Chief Minister A Revanth Reddy, is committed to developing an efficient, sustainable, and commuter-friendly public transport system in Hyderabad.
Hyderabad's growth and metro connectivity
Noting that Hyderabad is emerging as a major center for India's economic growth, Rao said expanding metro connectivity is crucial for the city's rapid development. The state government recently acquired 100% shares of L&T Metro Rail Hyderabad Ltd through HMRL. The loan is repayable over a 20-year tenure with quarterly payments.
Phase 1 details
The 69.2 km-long Phase 1 of the Hyderabad Metro Rail project, which includes three corridors and 57 stations, is one of the largest metro projects built under a public-private partnership (PPP) mode in the country. Approximately five lakh passengers travel daily using the network.
