Railway Board rejects Telangana’s proposal for free MMTS travel, citing mounting losses and unpaid state government dues.

Hyderabad: The Railway Board has rejected the Telangana government’s proposal to provide free travel in Multi-Modal Transport System (MMTS) trains in Hyderabad from June 2, citing significant financial losses and pending dues owed by the state government.

According to railway officials, the MMTS network is already operating under heavy financial strain. In a letter sent to the state government, the Railway Board stated that the service has incurred losses of nearly Rs 160 crore in the past year alone.

Outstanding payments by Telangana govt

Officials also pointed out that the Telangana government has yet to clear approximately Rs 490 crore in outstanding payments related to the MMTS project.v

The state government had proposed offering free travel on MMTS trains as part of its welfare initiatives. However, railway authorities declined the request, arguing that implementing the scheme would further increase financial losses.

The Railway Board clarified that it would consider the proposal only if the Telangana government provides a formal assurance to bear the entire financial burden arising from the free travel scheme. Until such a commitment is made, the proposal will not be approved.

Railway officials emphasised that the sustainability of MMTS operations remains a priority and that any decision affecting revenue must be backed by adequate financial support from the state government.