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L&T Extends Hyderabad Metro Stake Sale Deadline to December 31
Larsen & Toubro wants to sell its share in the Hyderabad Metro project.
The sale is planned with Hyderabad Metro Rail Ltd, a Telangana government enterprise.
The deal is worth Rs 1,461.47 crore.
The company now expects the sale to be completed by December 31, 2026.
This deadline has already been moved several times.
L&T says the metro project has faced financial losses and other difficulties.
It also says construction was delayed by problems such as land acquisition and shifting utilities.
L&T has said that expected financial help from the Telangana government was not provided.
The company told the central government that these issues have made the project harder to manage.
Larsen & Toubro extended the estimated completion date for selling its entire stake in L&T Metro Rail (Hyderabad) to December 31, 2026.
The proposed transaction with Hyderabad Metro Rail Ltd is valued at Rs 1,461.47 crore.
L&T had previously shifted the expected completion date from June 30 to September 30, 2026.
The company cited operational and accumulated losses, along with structural, financial and regulatory challenges.
L&T said delays involving property acquisition, right of way, alignment changes and utility shifting caused cost and time overruns.
- Who
- Larsen & Toubro, L&T Metro Rail (Hyderabad) Ltd, Hyderabad Metro Rail Ltd and the Telangana government are involved.
- What
- L&T extended the estimated completion date for selling its entire stake in L&T Metro Rail (Hyderabad) Ltd to December 31, 2026.
- Where
- The transaction concerns the Hyderabad Metro project in Telangana, India.
- When
- The revised deadline is December 31, 2026; the announcement was made on Wednesday.
- Why
- L&T cited operational and accumulated losses, structural, financial and regulatory challenges, and delays that caused substantial cost and time overruns.
L&T’s position
Telangana government’s position
Financial assistance
L&T’s position
L&T Metro Rail said the Telangana government had not provided expected financial assistance despite repeated follow-ups, worsening the concessionaire’s financial difficulties.
Telangana government’s position
The article reports the company’s claim but does not provide a response from the Telangana government.
Project delays and overruns
L&T’s position
L&T attributed substantial cost and time overruns to issues including property acquisition, right of way, alignment changes and utility shifting, which it said were beyond the concessionaire’s control.
Telangana government’s position
No separate explanation or counterclaim from the Telangana government is provided in the article.
Stake sale
L&T’s position
L&T wants to divest its entire stake, which is stated to be more than 90 percent, citing operational and accumulated losses.
Telangana government’s position
Hyderabad Metro Rail Ltd has entered into the pact to acquire L&T’s stake, but the article does not state the government’s broader position on the sale.
Key facts
- Seller
- Larsen & Toubro
- Asset
- L&T Metro Rail (Hyderabad) Ltd
- Proposed buyer
- Hyderabad Metro Rail Ltd, a Telangana government enterprise
- Transaction value
- Rs 1,461.47 crore
- Revised completion date
- December 31, 2026
- Previous expected dates
- June 30 and September 30, 2026
- Reported challenges
- Property acquisition, right of way, alignment changes, utility shifting, and financial and regulatory difficulties
Quotes
Larsen & Toubro
The company announcing the revised transaction completion date in a filing to the BSE
“...to our earlier intimations dated April 29, 2026 and July 1, 2026...we hereby inform you that the estimated completion date for the aforesaid transaction has been revised to December 31, 2026”
deccanchronicle.com
Sources
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