The Telangana government will take over Phase I of Hyderabad Metro as L&T has decided to divest their complete stake in the project.

The state government on Thursday agreed in principle to take over the Phase-I Metro Rail project by taking over the debt of about Rs 13,000 crore.

The state government will also pay about Rs 2,000 crore to L&T towards their equity investment in L&T Metro Rail Hyderabad Limited (LTMRHL) as a one-time settlement.

The decision was taken at a meeting that Chief Minister A. Revanth Reddy had with L&T Group CMD S.N. Subrahmanyan here.

Subrahmanyam suggested that the state government take over the complete debt of LTMRHL and pay about Rs 5,900 crore for its equity value.

He also pointed out that, as per the Supplementary Concession Agreement signed on July 22,

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