Hyderabad: The Railway Board has rejected the Telangana government's proposal to introduce free services on the Multi-Modal Transport System (MMTS) network in Hyderabad, citing financial constraints, operational losses, and pending dues related to ongoing MMTS projects.
The decision comes as a setback to the state government's efforts to promote public transport and reduce traffic congestion in Hyderabad and its surrounding regions. The Telangana government had planned to launch the free MMTS travel scheme on June 2, coinciding with Telangana Formation Day, and had reportedly offered to bear the operational expenses associated with the initiative.
According to sources, the Railway Board expressed concerns over the financial viability of the proposal, pointing to the mounting losses incurred by the MMTS network. Officials noted that the suburban rail service is currently facing substantial operational deficits, estimated at around ₹160 crore annually.
The Board also highlighted pending liabilities of approximately ₹490 crore owed by the Telangana government towards MMTS-related infrastructure projects, raising further concerns about the feasibility of implementing the fare-waiver scheme.
The decision was communicated to the state government following discussions on the proposal to provide free travel for daily suburban commuters. Railway authorities maintained that the existing financial challenges and unresolved dues make it difficult to support the initiative at this stage.
The rejection is expected to prompt further discussions between the Centre and the state government regarding the future expansion and sustainability of Hyderabad's suburban rail network.
