Hyderabad’s transportation landscape is undergoing a seismic shift, with the advent of free bus rides significantly altering commuter behaviour. As women flock to buses, the once bustling metro trains are feeling the impact. Amidst this dynamic scene, L&T, the driving force behind Hyderabad’s metro project, contemplates an exit strategy post-2026.
L&T Contemplates Post-2026 Sale Amidst Shifting Transportation Trends
Director of L&T R. Shankar Raman clarified this, explaining how the Congress government’s free bus ride promotion had impacted the metro system’s appeal. The dynamics of public transport are under close scrutiny because L&T owns a sizable 90% of the metro project, with the Telangana government owning the remaining 10%. With its 65-year concession, Hyderabad’s commuters first viewed the metro project as a shining example of efficiency and modernity.
But the Mahalakshmi bus scheme, which provides free rides on government-run non-AC buses to women and transgender people, changed the face of transport. According to India Today, Raman emphasised how this programme resulted in a notable distribution of travel preferences by gender. Attracted by the promise of free transport, women flocked to buses, and men found themselves drawn to the metro, even though tickets cost an average of ₹35.
Free Bus Rides Vs. Paid Metro
There were noticeable effects of this change. Raman observed a drop in metro usage, which he attributed to the attraction of free bus rides. In light of declining ridership, he underlined the necessity of easing the financial burden on the Hyderabad metro project. According to India Today, L&T negotiated strategically with the Telangana government and was able to obtain a sizable soft loan of ₹3,000 crore to lessen the burden.
Although Raman acknowledged the efforts of the state government to increase public transport accessibility, he expressed concerns regarding an excessive dependence on vehicles that are prone to pollution. He emphasised that a city like Hyderabad needs a well-balanced transport ecosystem, and he argued that using populist measures alone is not a smart strategy.
Raman’s insights illuminated the complexities of Hyderabad’s changing transportation landscape and the opportunities and challenges that accompany the metro project, even as L&T reported a notable increase in consolidated net profit.
Cover Image Courtesy: Wikimedia Commons