Hyderabad Metro gets major boost with 13,500 crore refinancing from IRFC

Hyderabad: In a major development, the government-run Hyderabad Metro Rail Limited (HMRL) secured a working capital refinancing worth Rs 13,600 crore from the Indian Railway Finance Corporation Limited (IRFC).

The loan agreement was signed by the IRFC, Larsen & Toubro Metro Rail (L&T Hyderabad), and HMRL in Delhi on Monday, May 25. Structured as a 20-year loan with quarterly repayments, it will help replace high-interest debt with lower-cost, long-term rupee-denominated financing.

Telangana Chief Secretary K Ramakrishna Rao, who attended the ceremony, said that in addition to reducing the current debt burden, this would also facilitate future metro expansion plans.

The massive Rs 13,600 crore amount will be utilised to refinance existing debt obligations, including non-convertible debentures, commercial papers, and working capital refinancing. Through the initiative, existing lenders will secure a systematic exit, while the financial stability of the project is set to improve significantly.

The refinancing transaction is bolstered by a robust credit enhancement framework, including a binding and unconditional payment guarantee from the state government and an RBI-backed direct debit mandate.

This not only strengthens the financial viability of the Hyderabad Metro Phase 1 Project but also accelerates expansion plans like new corridor development, improved connectivity to emerging areas, and enhanced last-mile connectivity.

Spanning 69.2 km across three corridors and comprising 57 stations, the Phase 1 project is one of the largest metro projects in India, developed under the Public-Private Partnership (PPP) model. Currently, this network serves over 500,000 commuters daily.