Hyderabad MMTS May Go Free As Telangana Plans 100 Electric Buses For Last-Mile Connectivity

The Telangana government is moving ahead with an ambitious plan to revive Hyderabad's suburban rail network by proposing free travel on the Multi-Modal Transport System (MMTS), along with a fleet of 100 electric feeder buses to improve last-mile connectivity to stations.

As part of the proposal, the municipal administration and urban development (MA&UD) department is planning to procure 100 electric buses to connect MMTS stations. These feeder services are also proposed to be operated free of cost, in a bid to make suburban rail travel more accessible and attractive for daily commuters.

Draft MoU Likely To Be Sent To SCR Soon

Sources said the MA&UD department is expected to send a draft memorandum of understanding (MoU) to the South Central Railway (SCR) within the next two to three days, seeking approval for free MMTS travel while offering to reimburse ticket revenue.

If the proposal is accepted and receives clearance from the Railway Board, the combined free MMTS and feeder bus services are likely to be rolled out from Telangana Formation Day on June 2.

Officials said multiple departments, including MA&UD, had already submitted the proposal to SCR on April 4, offering to bear the cost of passenger fares. In response, SCR asked the state government to prepare a draft MoU laying out the implementation terms before the matter could be forwarded to the Railway Board.

An SCR official said the proposal "is on hold, neither accepted nor rejected," and added that the Board will take a final decision.

State Offers ₹10 Crore Annual Compensation To Railways

The initiative is aimed at reducing traffic congestion and pollution in Hyderabad by pushing more people towards public transport. To make the proposal viable for the railways, the Telangana government has offered to pay SCR a fixed annual amount of ₹10 crore, regardless of passenger volumes, as compensation for fare revenue loss.

Alongside the financial offer, the state has also requested SCR to improve the MMTS network by increasing train frequency during peak hours, ensuring better punctuality, and upgrading station facilities.

In return, the government has promised last-mile connectivity through shuttle services to be run by the Telangana State Road Transport Corporation (TSRTC), which would help commuters travel between stations and nearby residential or commercial hubs more easily.

Falling MMTS Ridership Sparks Government Push

The fresh push comes after Chief Minister A. Revanth Reddy raised concerns over the sharp fall in MMTS ridership in Hyderabad.

Daily passenger numbers on the suburban rail system have now dropped to around 38,000 to 42,000, a steep decline from nearly 1.2 lakh passengers before the Covid-19 pandemic.

The state government's review report pointed to several reasons behind the slump, including poor scheduling, fewer services, and sudden cancellations. It also highlighted the lack of last-mile connectivity and inadequate station infrastructure as major deterrents for passengers.

Officials noted that confusion over train arrival points has also affected commuter confidence in the system.

Railway Board To Decide On Operations-Related Changes

While the Telangana government is keen to make MMTS travel free and improve station access, the final call on several operational issues still lies with railway authorities.

SCR continues to control train operations and scheduling, while station infrastructure and facility upgrades fall under Railway Board norms. That means any significant changes to service patterns or station improvements will require approval at the central railway level.

For now, MMTS services continue to run based on demand and operational constraints, with the state awaiting a formal response on whether its free-travel proposal can move forward.