Hyderabad Metro Rail project covers three high density traffic corridors of Hyderabad - (1) Miyapur-LB Nagar (28.87 km - 27 stations); (2) JBS-Falaknuma (14.78 km - 16 stations); & (3) Nagole-Shilparamam (27.51 km - 23 stations).    Total: 71.16 km; 66 stations.  The cost of the Project as approved by GoI is Rs.12,132 crore. The Project is in public private partnership (ppp) mode on design, build, finance, operate and transfer (DBFOT) basis.

Upto 40% of the project cost i.e., a maximum of Rs.4,853 Cr. can be given as viability gap funding (VGF) by the central and state governments together, subject to competitive bidding.  Government of India has sanctioned Rs.2,363 Cr. as it's share under the VGF scheme for this purpose. This amount forms 20% of the estimated cost of the Project of Rs.12,132 crore minus the State  taxes component of Rs.318 crore.

As the previous Concessionaire M/s.Maytas Metro Ltd failed to achieve Financial Close by the due date, the Concession Agreement with them was terminated by Government in July 2009. The bid security of Rs.60 crore along with Rs.11 crore paid by them was forfeited and GoAP invited global bids through fresh pre-qualification. The following companies/consortia which were pre-qualified through this process, purchased the Bid documents:

Financial bids for the Project were opened on July 14, 2010 and following three pre-qualified bidders participated in the bids:

Concession Agreement (CA) was signed by Government of Andhra Pradesh and L&T Hyderabad Metro Rail Private Limited, the SPV company set up by L&T for development of the Project on DBFOT basis, on September 04, 2010.