Larsen & Toubro extends Hyderabad Metro stake sale deadline

Larsen & Toubro (L&T) has extended the deadline to complete the sale of its stake in L&T Metro Rail (Hyderabad) Ltd to December 31, 2026. This marks the third extension for the transaction, which was previously scheduled for completion by June 30, 2026, and later September 30, 2026.

L&T has agreed to divest its entire stake, which exceeds 90 per cent of the project, to Hyderabad Metro Rail Ltd—a Telangana government enterprise—for Rs 1,461.47 crore. The company cited operational and accumulated losses as reasons for its decision to exit the project.

In communications with the Ministry of Housing and Urban Affairs, L&T Metro Rail noted that the Telangana government has not provided expected financial assistance despite repeated requests. The company also reported facing structural, financial, and regulatory challenges, including delays related to property acquisition, right-of-way issues, alignment changes, and utility shifting.