Commuters in Hyderabad will experience a fare hike of up to 25% on the Metro starting May 17, affecting over five lakh daily passengers. L\&T Metro Rail (Hyderabad) Limited (L\&TMRHL), the operator of Hyderabad Metro, has announced a fare increase effective May 17. The base fare will rise from Rs 10 to Rs 12, while the maximum fare will escalate from Rs 60 to Rs 75, depending on the distance travelled. This marks the first fare revision since the metro’s inception in 2017.
REASONS BEHIND THE FARE INCREASE
The decision to raise fares aligns with similar actions taken by other metro systems, such as Bengaluru Metro, which recently increased its fares by up to 50 per cent.
In accordance with the Metro Railways Act, 2002, a Fare Fixation Committee (FFC) was established in 2022 to recommend a revised fare structure. The committee submitted its report on January 25, 2023, leading to the current fare adjustment.
L\&TMRHL has been facing financial challenges, with cumulative losses reportedly exceeding Rs 6,500 crore since the project’s launch.
The COVID-19 pandemic significantly impacted travellers and revenue, contributing to these financial strains. The fare hike aims to address escalating operational costs and ensure the financial sustainability of the metro system.
COMMUTERS REACTIONS AND FUTURE PLANS
The fare increase will impact over five lakh daily commuters who rely on the metro for their transportation needs. Some passengers have expressed concerns, suggesting that the metro authorities should focus on expanding capacity by adding more coaches before implementing fare hikes.
However, certain travelers’ associations acknowledge that, given this is the first fare revision in seven years, the decision is justified.
L\&TMRHL has also explored alternative revenue streams, including retail rentals and advertising, to mitigate financial losses. Despite these efforts, the fare revision was deemed necessary to maintain and enhance the quality of metro services.
The company has appealed to commuters for their cooperation and understanding regarding the revised fare structure.
In the broader context, metro systems in other cities have also faced similar challenges. For instance, Bengaluru Metro’s fare hike led to public outcry and demands for a rollback, highlighting the delicate balance between operational sustainability and commuter affordability.
As Hyderabad continues to grow, the metro system remains a crucial component of the city’s public transportation network. The fare revision reflects ongoing efforts to balance financial viability with the provision of efficient and reliable transit services for the city’s residents.