SBI CAPS to Initiate Hyderabad Metro Rail Phase-I Valuation This July
The Telangana government, alongside central authorities, has appointed SBI CAPS to conduct a fresh valuation of the Hyderabad Metro Rail Phase-I assets. This process, beginning in July 2026, is essential for the proposed government takeover and the subsequent planning of the Phase-II network expansion.
Highlights
- •SBI CAPS will begin the valuation of Hyderabad Metro Rail Phase-I in July 2026.
- •The consultant's mandate includes a comprehensive funding and technical study for Phase-II.
- •The valuation process is now being conducted under the direct supervision of the central government.
- •A formal report from the consultant is expected to be submitted within three months.
The transition toward the proposed takeover of the Hyderabad Metro Rail Phase-I is moving forward as SBI CAPS prepares to initiate a professional valuation process in July 2026. This significant step, involving the Telangana state administration and central authorities, aims to establish a clear roadmap for the existing network acquisition and the subsequent development of the ambitious Phase-II expansion project.
Strategic Valuation and Infrastructure Development
SBI CAPS, designated as the joint consultant by both the central and state governments, is scheduled to commence its operational mandate during the first week of July. The agency will conduct a comprehensive assessment of the Phase-I assets while simultaneously performing an in-depth study regarding funding strategies and technical requirements necessary for Phase-II. According to official reports, the central government is anticipated to issue formal directives shortly to kickstart this exercise.
The consultant is tasked with delivering a formal report within a three-month timeframe. This documentation will serve as the foundation upon which both levels of government will finalize the acquisition terms and establish the strategic framework for the network's expansion. This renewed valuation process is being conducted under the direct supervision of the central government, a notable deviation from previous methodology.
The appointment of the firm followed high-level discussions between Telangana Chief Minister A. Revanth Reddy and Union ministers Ashwini Vaishnaw and Manohar Lal Khattar held in Delhi in late June 2026. These meetings prioritized the valuation of the existing infrastructure currently managed by L&T and the alignment of plans for the second phase.
Evaluating Financial and Asset Parameters
In previous efforts, IDBI Capital had analyzed the project's financial and legal facets, while Delhi Metro International Limited provided technical evaluations. Those reports previously pegged the value of ready-to-use assets at approximately ₹19,136 crore, with freehold assets estimated at ₹22,102 crore. Utilizing those prior assessments, the state had earlier entered a share purchase agreement with L&T on April 29 for a reported ₹15,000 crore.
While the incoming assessment by SBI CAPS may incorporate marginal adjustments, particularly regarding specific land parcels, major deviations from the previously established valuations are considered unlikely. The agency brings extensive experience in managing large-scale government asset transitions, including their historical involvement in the acquisition of Nizam Sugars. Stakeholders are now looking toward the upcoming SBI CAPS report to provide the final clarity needed to push the Hyderabad Metro Rail development forward to the next stage.
