The decision is seen as a setback to the state’s plan to ease traffic congestion in Hyderabad and its surrounding areas. The government had proposed to roll out the scheme from June 2, coinciding with Telangana Formation Day, and had offered to bear the operational costs.
Hyderabad: The Railway Board has rejected the Telangana government’s proposal to provide free MMTS services in the city, citing financial constraints and pending dues.
The decision is seen as a setback to the state’s plan to ease traffic congestion in Hyderabad and its surrounding areas. The government had proposed to roll out the scheme from June 2, coinciding with Telangana Formation Day, and had offered to bear the operational costs. Sources said the Railway Board flagged mounting financial stress, operational losses and outstanding payments. The MMTS network was reported to be incurring losses of about ₹160 crore annually.
The Railway Board also pointed out that the Telangana government has pending liabilities of around ₹490 crore towards MMTS projects.
The decision was conveyed to the state after discussions on a proposal to waive fares for daily suburban commuters, with financial viability cited as a key concern.
