Hyderabad Metro Heavy Losses:

The Hyderabad Metro, which started operations in 2017, has made travel easier for lakhs of people every day. It provides a smooth journey across the city without traffic issues. However, despite its importance, the Metro is running in heavy financial losses.

Hyderabad Metro Heavy Losses:

Construction company Larsen & Toubro (L &T), which developed the project under a public-private partnership (PPP), has written a letter to the Central Government. In the letter, L &T clearly stated that it cannot continue running the Metro due to financial pressure. The company said that the cost of operations, power bills, staff salaries, and maintenance expenses are very high. On top of this, the revenue from ticket sales is not enough to cover the expenses.

Another major issue is the pending dues. The Telangana Government has not cleared nearly ₹5,000 crore in arrears that were to be paid as part of subsidies and other commitments. Similarly, the Central Government has not released the ₹254 crore Viability Gap Funding (VGF) promised earlier. Due to these delays, L\&T says it is unable to manage the Metro services smoothly.

Every day, around 4.5 lakh passengers use the Metro. Even though ticket fares were increased recently, the income has not improved much. In fact, passengers were unhappy when ticket rates went up. To reduce the burden, L\&T has even offered to hand over the Metro operations to either the State or Central Government. They have also suggested forming a Special Purpose Vehicle (SPV) that can take charge of running the project.

The Hyderabad Metro is India’s first Metro project built under the PPP model and covers 69 kilometers with three corridors. While it was built with an investment of around ₹22,000 crore, it continues to face financial struggles. L\&T has now made it clear that without government support, it will be impossible for them to run the Metro in the future.

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