L&T contemplates Hyderabad Metro sale; Free bus rides dent Metro

HYDERABAD: Hyderabad faced a transportation crisis. The Hyderabad Metro, partially owned by L&T, was in financial trouble due to low ridership and limited resources.

In a recent revelation to BT TV, R. Shankar Raman, President and CFO of L&T, disclosed the company's contemplation of selling off Hyderabad Metro after 2026, citing ridership trends. Despite holding a concession to operate the system for an extensive 65-year period, Raman underscored the pressing need to alleviate the financial strain, particularly given the current daily ridership figures hovering around 480,000.

He explained that the Congress Government's free travel scheme for women in RTC buses unintentionally caused problems for the transportation network. The initiative led to bus overcrowding, forcing many men to use the metro instead.

Unfortunately, the increase in metro ridership didn't provide enough revenue to cover operational costs. The maintenance expenses continued to rise, and the financial strain on the metro system became critical. This situation highlights the problem with current transportation policies. They are unsustainable and have significant consequences for the state's finances and the viability of the transport corporation.

The Telangana State Regional Transport Corporation (TSRTC) is also struggling. The free bus ride scheme significantly strained its finances. Overcrowded buses and soaring maintenance costs put the RTC on the brink of financial collapse. Buses had to be maintained once every five years. With a majority of commuters enjoying a free ride, where did the money for the maintenance of the buses come from?

This scenario could have far-reaching consequences for the region's public transportation network.