L&TMRH metro rail ticket fare hike irks government

Telangana government upset with L&T over Hyderabad Metro fare hike, demands new trains for peak ridership.

The Telangana government is once again reportedly upset with the L&T, this time for going ahead with the fare hike of the Hyderabad Metro Rail (HMR) operations of Phase-I of 69.2 km across the three traffic corridors by its subsidiary L&T Metro Rail Hyderabad (L&TMRH).

L&TMRHL had announced a 20-25% hike on metro train ticket fares from May 17 and within a few days, revised the same with a 10% discount from May 24 effectively changing the hike in ticket fares from ₹1 to ₹19 in all the three metro corridors — Red, Blue and Green.

The service operator had cited the recommendation of the Centre-appointed Fare Fixation Committee (FFC), headed by a retired high court judge (with representatives of the Centre and State), for the ticket fare hike. The firm had earlier revoked the discount on non-peak hours, but retained the student passes.

Chief Minister A. Revanth Reddy had apparently conveyed to the metro rail authority to keep in abeyance the proposed ticket fare hike, according to official sources. Yet, the top management of the metro service operator went ahead with the announcement citing mounting losses due to project delay, high interest rate of loans and COVID suspension of services.

The sources said that the government had expressed its displeasure over the manner in which the fare revision was done by the top brass of the firm, while pointing out that it is a public, private partnership (PPP) project. There has been 10% drop in ridership post the new fares though metro rail officials say the numbers will stabilise in three months.

The government, which is reported to be upset with L&T over the Kaleshwaram Lift Irrigation Project construction imbroglio, has another gripe with the firm. It is about the pact to be made between L&TMRH and Hyderabad Airport Metro Limited (HAML) on sharing of existing infrastructure, including trains, metro lines and revenues, when the second phase becomes operational.

The Centre, currently studying the detailed project reports (DPRs) for the HMR second phase of 76.4 km estimated to cost ₹24,269 crore for five corridors, has sought an advance pact from PPP concessionaire and the State government. The government was irked over the unhurried stance of the firm. Although a pact seems to be place now. Further, the government wants to put pressure on L&TMRH to purchase new train sets, which it has been proposing for a while, in view of the rush hours peak ridership.