HYDERABAD: The Telangana government may take a few more weeks to assume complete control of Hyderabad Metro Rail despite signing an agreement to acquire 100% equity stake in L&T Metro Rail (Hyderabad) Limited.

Until the transition process is completed, the Metro Rail board led by L&T will continue handling day-to-day operations. Officials said the new board appointed by the government could take additional time to formally assume charge.

The transfer process is linked to the restructuring of loans taken from the Indian Railway Finance Corporation (IRFC) with state government backing, along with completion of equity payments from the Hyderabad Metropolitan Development Authority (HMDA).

L&T informed the Bombay Stock Exchange (BSE) that the handover process could continue till June 30. Though the state government assured immediate payment of equity dues, L&T is understood to have sought simultaneous completion of equity settlement and loan restructuring.

Officials said the process could be completed within two weeks.

Until then, L&T will continue taking key administrative and financial decisions with the approval of the state government.

Tripartite agreement needed for loan restructuring

A tripartite agreement will be signed among L&T Metro Rail Hyderabad Limited, Hyderabad Metro Rail Limited (HMRL) and IRFC for restructuring of loans.

An escrow account will be opened as part of the process. Payments towards existing and overdue loans will also be cleared. The Telangana government will provide guarantees in place of L&T.