Telangana government’s free bus travel scheme for women is causing losses to Hyderabad Metro. Its promoter L&T is considering exiting this project. The financial condition of the metro project has been a matter of concern for L&T. It has listed Hyderabad Metro as a non-core asset in its books from 2021. Hyderabad Metro ridership has fallen from 5.5 lakh to 4.6 lakh per day in November 2023. Telangana had announced the free bus travel scheme for women on December 9, 2023.
For the Hyderabad Metro project to be viable, metro ridership should remain above 5 lakh per day and its debt should come down from Rs 12,000 crore to Rs 8,000 crore. L&T got this project in 2010. Its estimated cost increased from Rs 14,000 crore to Rs 20,000 crore due to delays, leading to the 69 km line being completed in 2020.
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L&T, initiated by the Congress-led Telangana government, has said the scheme has made metro ridership “less interesting”. The company will consider exiting the project after 2026. Engineering giant L&T holds 90% stake in Hyderabad Metro, while the Telangana government holds the remaining 10%.
L&T CFO Shankar Raman told Business Today TV that the government’s move will not help the state’s financial situation. “There is gender distribution in the transport system. The buses are being used by women who do not make any payment and the metro is being used by men who pay an average of Rs 35 per ticket. ,
