Hyderabad: Amid mounting losses, the L&T Metro Rail Hyderabad (L&TMRHL) is considering a fare revision on all its three routes across the city. While officials refrained from sharing further details, they hinted at the possibility given the losses accumulated since the project’s inception in 2017.
According to official sources, the operator has losses exceeding 6,500 crore, raising concerns over the project’s financial sustainability. “It is crucial to take measures to prevent the project from becoming a non-performing asset,” L&TMRHL’s statement issued on Friday read.
It added: “All steps have been taken to optimise other revenue streams from non-fare business, yet the possibility of a fare hike looms over as a necessary step to cover rising input cost elements for the financial sustenance of the project.”
Currently the metro rail fare — fixed in 2017 — is a minimum of 10 for up to 2 km and the maximum of 60 for above 26 km. The probable fare hike will impact 5 lakh (approx.) daily metro users in the city.
Meanwhile, just last month in Bengaluru, the maximum fare was increased to 90 for any travel beyond 25km.
“Fares notified in 2017 have not been increased despite significant inflationary pressures,” the L&TMRHL said in its statement. The company, meanwhile, pointed out how other major metro systems have already implemented fare revisions — fares have increased by 44% in Bengaluru since 2017 while Delhi metro’s fare was also adjusted in 2017.
“Our focus remains on improving and maintaining a high-quality service for our passengers while ensuring the financial viability of the metro system. We are continuously exploring ways to optimise costs and improve other revenue streams, including retail spaces and advertising, to bridge the fund gap,” added the company statement.
Reportedly, in May 2024, a tussle broke out between the operator and the Telangana govt when L&T president, whole-time director and CFO R Shankar Raman, in an interview, said that the Mahalakshmi scheme — which offers free bus rides to all women in the state — was adversely affecting metro’s ridership. Days later, chief minister Revanth Reddy said that L&T was free to leave the project but reaffirmed that the govt would continue its welfare schemes.
