Telangana's Free MMTS Proposal Stalled by Massive Railway Dues
Hyderabad: The Telangana government's ambitious plan to offer free travel on MMTS (Multi-Modal Transport System) trains has encountered a significant obstacle. The proposal, which involves compensating South Central Railway (SCR) with approximately 10 crore annually, is now at risk due to the state's outstanding dues of nearly 500 crore owed to the railways.
Long-Standing Financial Dispute Escalates
In response to the free travel initiative, SCR has formally requested the state to clear long-standing payments linked to the MMTS Phase-II project. Railway officials indicate that these dues have remained unpaid for almost a decade, creating a financial impasse. In a communication to the government, SCR emphasized that current MMTS operations are aligned with passenger demand and operational constraints.
An official from SCR's commercial department stated, "SCR reserves the right to determine the number of services to be operated, along with their timings. Facilities at MMTS stations are provided as per extant Railway Board norms. Also, your kind attention is invited towards the dues from the state government, payable to railways towards implementation of MMTS Phase-II project. This is to the tune of 491.45 crore."
Although the MMTS Phase-II project was originally conceived as a joint funding effort between the state and railways, the latter proceeded with construction using its own resources. The agreement mandated financial contributions from Telangana, particularly for procuring new train sets. Except for the Lallaguda–Sitaphalmandi chord line, works on most sections under Phase-II have been completed.
Declining Ridership and Service Challenges
Simultaneously, falling ridership on MMTS trains, driven by the expansion of Metro services and free bus travel for women, has reduced the immediate need for additional services. Even if free travel is introduced, it may not significantly boost usage unless SCR adjusts its operations. Fares are already minimal, ranging between 5 and 15 rupees, making them four to five times cheaper than RTC buses and Metro services.
Despite low costs, commuters continue to avoid MMTS due to inconsistent schedules, frequent delays, abrupt cancellations, and the absence of services between 10 am and 4 pm. Daily ridership has plummeted from 1.6 lakh passengers to about 45,000, highlighting systemic issues.
Commuter Demands for System Revival
To revive the suburban rail system, commuters and advocacy groups are urging authorities to prioritize MMTS as a key urban transport mode. Their demands include:
- Increasing service frequency to improve reliability.
- Fast-tracking pending Phase-II work and initiating Phase-III expansion.
- Enhancing connectivity to major hubs such as IT corridors.
- Strengthening coordination between the state and railways with assured funding for new rakes and service improvements.
P Bharadwaj of the Suburban Trains and Bus Travellers' Association commented, "Unreliable timings, extended stoppages between stations, and last-minute cancellations are major reasons for abandoning the service. Railways must restore services between 10 am and 4 pm and bring back the 120 daily services that operated before the pandemic. There is also only one train between Charlapally and Hi-Tec City, and more services are needed."
The path forward for MMTS revival hinges on resolving the financial deadlock and addressing operational inefficiencies, with both state and railway authorities under pressure to collaborate for sustainable urban transport solutions.



