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 .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  .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 .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
.12,132 crore minus the State  taxes component of  .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  .60 crore along with .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:

The Project was awarded to the  successful lowest bidder  M/s. Larsen & Toubro Limited  at their  quoted  grant amount of .1,458 crore  and LoA was issued to them on August 6, 2010.

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.