Onus On Every Citizen To Save Metro Rail, And Lives

First and last mile connectivity—the short distance between a metro station and a commuter's final destination—remains a significant barrier to Metro adoption. Commuters today spend an additional fare on last-mile travel—often more than their actual Metro fare. This cost barrier can keep even higher middle-income users away

The Hyderabad Metro Rail project has faced several challenges since its inception. After months of initial policy-level delays, it eventually began operations in 2017. In less than two years, it was virtually derailed by the Covid-19 pandemic.

The project has struggled to achieve its full potential, particularly in monetizing real estate opportunities such as retail rentals and advertising. This appears largely due to lower ridership, which in turn stems from factors like high initial fares and weak last-mile connectivity. Eight years later, one can across vacant spaces at several metro stations. Currently, the metro serves around five lakh passengers on a daily average.

L&T Metro Rail (Hyderabad) Limited (HMRL) announced that Metro fares would increase by over 25 per cent starting on May 17, marking the first fare revision since its launch. This hike appeared justified after seven years, but it risks reducing ridership. A decline in users could nullify the anticipated financial benefits, leaving the Metro back at square one.

When it loses commuters, it’s not just the system that suffers—the entire city pays the price. Reduced usage leads to increased congestion, pollution, accidents, and more blood on the roads. Notably, it has announced a 10 per cent discount on the newly revised fares effective May 24.

The public transport system is the soul of any city. Hyderabad, with its population of over one crore, is always on the move. City buses, operated by the Telangana State Road Transport Corporation (TGRTC), serve close to 20 lakh commuters daily. The rail-based Multi-Modal Transport System (MMTS) caters to around one lakh passengers, while private vehicles (two, three and four-wheelers) account for over 50 per cent of commuters.

The total number of vehicles in Hyderabad has surpassed 80 lakh, with two lakh new vehicles registered annually, of which 75 per cent are two-wheelers. Nearly every family owns a personal vehicle, resulting in increased road congestion and higher carbon emissions.

Foreseeing such concerns, the government of the erstwhile Andhra Pradesh proposed the Mass Rapid Transit System (MRTS) project, and the state legislature enacted the Andhra Pradesh Municipal Tramways (Construction, Operation and Maintenance) Act, 2008, now adapted as the Telangana Tramways Act. It was decided to undertake the Hyderabad Metro Rail Project on elevated structures across three corridors through a Public-Private Partnership (PPP) with partial financial assistance from the Union Government under the Viability Gap Funding (VGF) scheme on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis, as per Section 5 of the Telangana Tramways Act.

The government approved Larsen & Toubro Limited as the concessionaire to develop the project. A Special Purpose Vehicle (SPV), Hyderabad Metro Rail (HMR) Limited, was formed, and L&T incorporated L&T Metro Rail (Hyderabad) Limited to implement the project. The concession agreement was signed later.

The Government of India provided VGF Rs 1,458 crore, stipulating that fares be pre-determined under the concession agreement and not increased to reduce the viability gap.

The Telangana Tramways Act mandates that the operator collect fares as prescribed by the Hyderabad Urban Rail System (Collection of Fare by Concessionaire) Rules, 2011 —ranging from Rs eight to Rs 19, with peak and off-peak rates, and Rs 40 for unlimited day travel. Had HMR followed these rules, ridership and real estate income would have improved significantly.

Meanwhile, a 2012 notification in the Gazette of India extended the Metro Railways (Operations and Maintenance) Act, 2002 to Hyderabad, which allowed operators to fix initial fares without any oversight, under Section 33. This provision, offering a “blank cheque” to operators, leaves no room to challenge fares or disclose their basis.

The High Court of Andhra Pradesh, in Writ Appeal No. 414 of 2012, ruled that the Hyderabad Metro is regulated by the Telangana Tramways Act, 2008, as “the State Legislature is competent, as clarified by Article 366, to legislate on other lines of communication not being a railway.” Despite this judgment, Metro fares were set at Rs 10–60 in 2017.

These high initial fares discouraged low-income commuters, causing ridership to struggle to cross 2 lakh initially, which also impacted expected real estate income. Higher fares burden even middle-class commuters, as last-mile connectivity costs (Rs 20–50 for autos) add up for those far from stations.

The Mumbai Metropolitan Region Development Authority successfully challenged a hike by Mumbai Metro One Private Limited, capping Line 1 fares at Rs 10–40. The Bombay High Court noted that very low fares attract high ridership but low revenue, while very high fares reduce affordability, lead to low ridership and revenue. For a Mass Rapid Transit System, reasonable fares and high ridership are paramount to retain the PPP model’s character.

First and last

mile connectivity:

First and last mile connectivity—the short distance between a metro station and a commuter's final destination—remains a significant barrier to Metro adoption. Commuters today spend an additional fare on last-mile travel—often more than their actual Metro fare. This cost barrier can keep even higher middle-income users away.

To address this, the Delhi Metro Rail Corporation created a dedicated subsidiary called Delhi Metro Last Mile Services Limited, emphasizing the importance of this aspect in boosting ridership. Delhi Metro’s daily ridership now stands at approximately 78.67 lakh.

A case study by the Centre for Public Impact on the Delhi Metro highlights its positive impact, noting a reduction in road traffic and congestion. In 2014, twelve years after its first line opened, the Metro kept 2.3 lakh vehicles off the road, saving roughly Rs 10,400 crores in fuel. Delhi also saw a 23 per cent reduction in fatal accidents—from 2,015 in 2008 to 1,548 in 2016—partly attributed to Metro usage.

Singapore is often cited for its highly integrated public transport system. The MRT (Mass Rapid Transit) is seamlessly connected with an extensive network of feeder buses, which are meticulously planned to cover residential areas and business districts. The TransitLink fare system allows for integrated ticketing across all modes, making transfers frictionless.Telangana must invest actively in last-mile connectivity. A critical step is the expansion and better alignment of bus services operated by TGRTC. By ensuring that reliable buses or e-shuttles are available within walking distance of every Metro station, the state can exponentially amplify Metro’s reach and impact. Further, integrating the Metro system with the Multi-Modal Transport System (MMTS) should be another key priority, creating a more seamless and extensive public transportation network for Hyderabad and its surrounding areas.

(The writer is a transparency and equality advocate and author. Opinions are personal)