New Delhi: The Indian Railway Finance Corporation Ltd. (IRFC) has signed a ₹13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Limited and Hyderabad Metro Rail Limited (HMRL) for refinancing the Hyderabad Metro Rail project. The deal is being described as one of the largest urban transit refinancing transactions in India.
The agreement aims to strengthen the financial structure of the Hyderabad Metro and support long-term sustainable urban transport development.
One of India’s Largest Urban Transit Refinancing Deals
The ₹13,527 crore refinancing agreement is structured with a 20-year tenure and quarterly repayments. Key financial features include:
- No processing fees
- No commitment charges
- No prepayment penalties
- Long-term rupee-denominated funding
The loan will refinance existing NCDs, commercial papers, and term loans of the project.
Strengthening Hyderabad Metro’s Financial Stability
Following the transfer of the Hyderabad Metro project to the Telangana government through Hyderabad Metro Rail Limited (HMRL), the refinancing is expected to:
- Reduce high-cost debt exposure
- Improve long-term financial sustainability
- Support future expansion and new metro corridors
- Enhance credit strength through government backing
The project is now fully supported by Telangana government guarantees and structured repayment mechanisms.
Strategic Ownership Transition Boosts Project Stability
The refinancing follows the 100% transfer of L&T Metro Rail ownership to the Government of Telangana via Hyderabad Metro Rail Limited (HMRL). This transition has strengthened the project’s public ownership structure, improving financial predictability and enabling smoother access to long-term funding.
Telangana Chief Secretary K. Ramakrishna Rao was present during the signing ceremony, highlighting the state’s strategic interest in strengthening urban mobility infrastructure.
Major Urban Mobility Project Serving Over 5 Lakh Daily Passengers
The Hyderabad Metro Rail Phase-I spans 69.2 km across three corridors with 57 stations, making it one of the largest metro rail projects in the world under the PPP model.
Currently, the metro system handles over 5 lakh passenger journeys daily, playing a key role in easing urban congestion in Hyderabad.
Leadership Highlights IRFC’s Expanding Infrastructure Role
IRFC Chairman and Managing Director Manoj Kumar Dubey said the transaction reflects the organisation’s growing capability to finance large-scale infrastructure projects beyond traditional railway financing.
He emphasized IRFC’s role in channeling domestic savings into national infrastructure development in line with the vision of Viksit Bharat.
Strategic Importance for India’s Urban Infrastructure Growth
The refinancing deal is expected to:
- Provide long-term low-cost funding stability
- Enhance urban transport infrastructure financing
- Support India’s expanding metro rail ecosystem
- Strengthen public-private infrastructure transition models
The transaction marks a significant step in scaling modern urban mobility systems across Indian cities.
About IRFC
Indian Railway Finance Corporation is a Navratna Public Sector Enterprise under the Ministry of Railways. It serves as the primary financing arm of Indian Railways and plays a key role in raising funds for railway infrastructure and related transport projects across India, increasingly expanding into broader infrastructure financing including urban mobility.
