HYDERABAD (Metro Rail News): In a significant drive for urban rail financing the Indian Rail Finance Corporation (IRFC) has signed a term loan agreement with L&T Metro Rail (Hyderabad) Limited for ₹13,527 crore to refinance the debt obligations of the Hyderabad Metro Rail project. This marks a major refinancing transaction in India’s urban transit sector.
This agreement follows the transfer of 100 per cent ownership of L&T Metro Rail (Hyderabad) Limited from Larsen & Toubro Limited to the Government of Telangana through Hyderabad Metro Rail Limited. This contract will refinance existing debt obligations, including non-convertible (NCDs), commercial papers and term loans, enabling an orderly exit for existing lenders while improving the project’s long-term financial sustainability.
The agreement was signed in the presence of IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K.Ramakrishna Rao. Mr. Manoj Kumar, CMD & CEO, IRFC said that, this transaction reinforces IRFC’s growing capability to structure innovative, long-tenor financing solutions for nationally significant infrastructure assets. It also reinforces our commitment to supporting sustainable urban mobility through efficient capital mobilisation.
The Hyderabad metro Phase-1 is the world’s largest metro rail project developed under the public-private partnership (PPP) model, spanning around 69.2 kilometers across 3 metro corridors and serves more than 5 lakh passengers on a daily basis. This agreement marks as a crucial step towards a more sustainable, seamless and efficient travel across the city.
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