L&T wants to get out of the Hyderabad metro, cites losses, debt and operational risk of phase II
L&T Metro Rail Hyderabad Ltd. Asked the Center and the Government of Telangana to take over the Hyderabad metro project, warning that the proposed expansion of phase II could trigger major operational and financial setbacks, reported information on Monday.
In a letter to the Ministry of Housing and Urban Affairs and the State Government, the subsidiary of L&T cited its aggravation financial situation and its risks of sharing of infrastructure reported linked to the next metro extension plan. Phase II aims to connect Hyderabad airport and high -tech corridors and is currently at the planning stage.
L&T Metro Rail has developed phase I of the 72 km network with an investment of almost 19,000 crores. He began his operations in 2017 under a 35 -year concession agreement. The center has provided viability funding, while the state has provided land support and other logistical support.
According to Informist, the company warned that sharing existing tracks, stations and infrastructure with the new corridors could create operational chaos. Already under pressure from the debt and the monetization of delayed assets, the company declared a net loss of 626 crores of ₹ during fiscal year 25 on income of 1,108 crore.
Despite repeated calls, the company said that it had not received any state relief to facilitate its load of interest or its debt stress. L&T, which has a 90% stake in the metro company, urged the government to regain its equity to “avoid future problems”, according to the report.
The Government of Telangana has the remaining 10% of the metro project. He has already submitted phase II plans to the Ministry of Urban Development for approval.
The parent company Larsen & Toubro Ltd. Has posted a consolidated net profit of 3,617 sterling books for the June quarter, with a turnover at 63,679 crosses. Friday, its stock closed 1.1% to 3,579.80 ₹ Le NSE.
