Larsen & Toubro (L&T) is planning to sell its stake in the Hyderabad Metro project after 2026 due to the impact of the free bus scheme launched by the Telangana government. The scheme has led to a decrease in metro ridership, making it less financially viable for L&T. L&T currently...
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owns 90% of the metro project, operating it under a 65-year concession. While L&T has secured a Rs 3,000 crore soft loan from the Telangana government, they are looking into monetizing the project's real estate and potentially selling it to pension funds or global investors by 2031. Despite praising the government's initiative, L&T's CFO expressed concerns about the sustainability of relying on polluting vehicles and the unpredictability of policy decisions based on promises.