Hyderabad Metro Rail (HMRL), India’s one of the largest public transport systems, has posted a staggering loss of ₹625 crore for the financial year 2024-25. Since its inception in 2017, the metro has been incurring losses, with a cumulative loss of ₹6,598.21 crore. Although the metro has been a favorite among commuters, it is still facing difficult times financially. The Hyderabad Metro ride points out the difficulty of sustaining public service with economic viability in mega infrastructure projects.
Impact of COVID-19 pandemic
The COVID-19 pandemic heavily affected Hyderabad Metro. Metro services were halted during the lockdown period 2020-21, resulting in a sharp decline in ridership and revenues. Even after the return of services, it took nearly two years for ridership to return to normal. It has taken an eternity for this to occur, and this has awfully affected the finances of the metro.
High operating expenses and repayment of loans
The second major reason for the losses is the very high operating expenses and cost of loan clearance incurred to build and extend the metro. The interest on these loans has also hit HMRL’s bottom line. Even though the Metro has raked in ₹1,400 crore in fares and advertisements, these revenues have failed to compensate for the increases.
Measures to curb losses
Over the past couple of years, HMRL took efforts to reign in its financial losses. Metro asset disposal and advertisement tie-up have been able to restrain the losses to some degree. These measures fell short of making Metro profitable. The authorities also contemplate enhancing the ticket fares, which can bring in extra revenue but would be resisted by commuters.
The way forward
Albeit being financially strapped, Hyderabad Metro is still an important component of Hyderabad’s mass transit system and eases transit as well as helps ease congestion in traffic. For the purposes of ensuring long-term viability, HMRL has the option of receiving additional assistance either from the government or from private equity firms. Opting for maximum efficiency in operations and seeking additional revenues will enable the Metro to overcome its financial recession and continue as a useful part of Hyderabad people’s transport mechanism.
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