Delhi Metro To Help Sate To Takeover HMR Operations
The decision follows a decision taken by the recent state cabinet meeting held at Medaram to expedite the process and ensure completion before March 31, ahead of the close of the current financial year 2025–26.
Hyderabad: The state government is preparing to appoint the Delhi Metro Rail Corporation (DMRC) as a technical consultant to expedite the takeover of Hyderabad Metro Rail (HMR) Phase-I operations from L&T Metro Rail Hyderabad Ltd (L&TMRHL), official sources said.
The decision follows a decision taken by the recent state cabinet meeting held at Medaram to expedite the process and ensure completion before March 31, ahead of the close of the current financial year 2025–26. The government is keen to streamline the transition in a time-bound manner while addressing financial, legal and technical complexities associated with the Metro Rail takeover.
Already, the government has appointed IDBI Bank as the financial and legal advisor to oversee aspects related to outstanding dues, liabilities, contractual obligations and valuation.
IDBI Bank has submitted its comprehensive report to the officials, outlining the financial claims payable to L&T and other related economic parameters. Based on this assessment, discussions between Hyderabad Metro Rail Limited (HMRL) and L&T are expected to progress toward finalising agreements and formal documentation. Officials said the report provides a crucial foundation for negotiations and safeguards the government against future disputes.
The decision to bring in DMRC as a technical consultant arose after it was found that agencies evaluating financial and legal matters lacked the specialised expertise required to assess the metro rail's complex engineering and operational systems. The Hyderabad Metro project is highly technology-driven, involving advanced infrastructure and integrated systems that demand detailed scrutiny. DMRC, with its extensive experience in metro rail construction, operations and management across multiple cities, is expected to conduct a comprehensive technical due diligence audit.
Official sources said the scope of the technical evaluation will include critical components such as rolling stock, electric traction systems, signalling technology based on Communication-Based Train Control (CBTC), stations, depots, operational control centres and maintenance practices. The consultant will also assess asset conditions, system performance, safety standards and long-term sustainability. An official order appointing DMRC is expected to be issued shortly.
A high-level committee led by Chief Secretary K. Ramakrishna Rao is overseeing the entire process, with the objective of completing the review and facilitating the takeover by March 31, in line with the deadline set by Chief Minister A Revanth Reddy. However, senior officials acknowledged that the complexity of contracts and technical assessments could take two months time, as meticulous examination is essential to avoid future legal or operational complications.
The Cabinet has directed officials to submit a detailed report on the way forward, including timelines and modalities for completing the takeover. This report will be placed before the Cabinet in its next meeting scheduled for February for approval. The government is focusing on ensuring that financial, legal and technical consultations move in parallel to prevent delays and maintain transparency.