Indian Railway Finance Corporation Ltd. (IRFC), a Navratna Central Public Sector Enterprise under the Ministry of Railways, has signed a ₹13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Limited (L&TMRHL). The agreement was executed on Monday, May 25, 2026.

The purpose of this loan is to refinance the existing debt obligations of the Hyderabad Metro Rail project, which includes non-convertible debentures (NCDs), commercial papers, and term loans. This transaction represents a landmark refinancing deal in India's urban transit sector.

The loan agreement was signed in the presence of IRFC's Chairman & Managing Director and CEO, Manoj Kumar Dubey, and Telangana's Chief Secretary, K. Ramakrishna Rao, highlighting the strategic significance of the transaction for urban mobility infrastructure.

This refinancing follows the transfer of 100% ownership of L&TMRHL from Larsen & Toubro Limited to the Government of Telangana through Hyderabad Metro Rail Limited (HMRL), transforming the metro into a state-owned public mobility asset.

Key Financial Terms

  • Loan Amount: ₹13,527 crore
  • Tenure: 20 years
  • Repayment Structure: Quarterly repayments
  • Fees: No processing fees, commitment charges, or prepayment penalties
  • Credit Enhancement: Backed by an unconditional and irrevocable undertaking by the Government of Telangana for servicing all dues, a state government guarantee, and an RBI-backed direct debit mandate

Project Details

The Hyderabad Metro Rail Phase-I spans 69.2 kilometers across three corridors with 57 stations. It is one of the world's largest metro rail projects developed under the public-private partnership (PPP) model. The network currently serves over 5 lakh passenger journeys daily.

Strategic Impact

This transaction enables an orderly exit for existing lenders and significantly improves the project's long-term financial sustainability. It will allow the Government of Telangana to accelerate the planned expansion of Hyderabad's metro network, including new corridors and enhanced connectivity. The deal also establishes a replicable financing framework for urban transit systems across India.

For IRFC, this agreement represents a significant step in diversifying its financing portfolio beyond conventional railway assets into high-impact public utility infrastructure.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.