Hyderabad: With ₹6,500 Crore in Losses, Will Metro Finally See a Fare Hike?

Despite growing speculation, Hyderabad Metro officials have confirmed that no decision has been made yet regarding a fare hike. The clarification comes amid reports highlighting increasing financial pressure on L&T Metro Rail (Hyderabad) Ltd (L&TMRHL), which operates the metro system.

₹6,500 Crore in Cumulative Losses

The Hyderabad Metro, serving over five lakh commuters daily, remains a key mode of transport in the city. However, operational costs and a reported cumulative loss of over ₹6,500 crore have made sustainability a pressing concern for L&TMRHL. The company has pushed for fare revision multiple times, but there has been no formal action from the Telangana government or Hyderabad Metro Rail Limited (HMRL).

Previous Proposal Ignored by State Government

In 2022, L&TMRHL had proposed a fare hike to compensate for losses incurred during the COVID-19 pandemic. A Fare Fixation Committee (FFC) was formed by the central government, which submitted its recommendations after evaluating economic factors and commuter feedback. However, the then state government did not act on the suggestions.

Mahalakshmi Scheme Sparks Tensions

Tensions escalated in 2024 when L&T alleged that the state’s free bus travel scheme for women (Mahalakshmi) was hurting metro ridership. This prompted a strong response from Chief Minister Revanth Reddy, who rejected the company’s claims.

Learning from Bengaluru’s 44% Fare Hike

L&T is reportedly citing Bengaluru’s 44% metro fare increase to reinforce its case. Yet, any fare hike in Hyderabad could disrupt daily commutes for thousands of citizens. The Telangana government is said to be weighing financial realities against public interest.

Current Fare Structure

Hyderabad Metro fares range from ₹10 to ₹60, depending on the distance traveled. No formal discussions on a fare revision are underway, but observers say developments are likely in the coming months as the financial strain deepens.