Congress Govt.’s control can put Metro Rail back on track
Chief Minister A. Revanth Reddy reverses the national trend, taking over the stalled Metro to deliver on commuters’ needs, not corporate excuses. In a bold move that defies the nationwide retreat of governments from public enterprises, Revanth Reddy has taken full control of the Hyderabad Metro Rail, ending L&T’s decade-long concession. What was once hailed as India’s largest public-private partnership had long been mired in stalled expansion, spiralling debt, and unmet promises.
On September 26, 2025, the Congress government decided to break the deadlock by taking full control of the Hyderabad Metro Rail. By assuming over Rs. 13,000 crore in liabilities and committing to compensate the private operator L&T for its equity, Revanth Reddy has signalled that for him, the Metro is not a balance-sheet burden but an emotional and moral responsibility toward lakhs of commuters who battle the city’s daily gridlock.
But politically and strategically, it marks a turning point.
A system frozen in place: Why government control matters
The existing network – 69 km across three corridors – had reached a standstill. The Centre refused to clear Phase 2 expansion until ownership and debt issues from Phase 1 were resolved. L&T, weighed down by losses, showed little appetite for further investment. As a result, Hyderabad slipped in the national rankings: once the second-largest metro in India, it now stands at ninth. For a city that brands itself as a tech capital, this stagnation was glaring.
Therefore, the logic behind the takeover is simple yet makes huge sense. Without public ownership, expansion was impossible. Every kilometre of new track required negotiations that had less to do with transport planning and more to do with balancing L&T’s losses. By absorbing the debt, the State frees itself to design expansion around urban needs rather than bureaucratic red tape or corporate balance sheets.
While critics may see this as the State paying for private inefficiency, the alternative – letting the metro languish – would have been more expensive in social and economic terms. Traffic congestion in Hyderabad is estimated to cost the economy thousands of crores annually in lost productivity and fuel. A stronger metro goes beyond being just a commuter service; it assumes a more consequential role as an investment in urban efficiency.
Phase 2: Unlocking Hyderabad’s growth map
With the ownership issue settled, Phase 2 can move forward now without further delay. The elaborate plan of eight lines, 163 km of new coverage, and connectivity to IT hubs, residential clusters, and emerging growth corridors can work wonders once it takes shape, and will go a long way in redefining Hyderabad transportation. This is not simply about adding stations but about reshaping how the city expands. Better connectivity eases real-estate pressure in core areas, opens up affordable housing zones beyond the city limits, and reduces the environmental toll of endless traffic within the core city region.
Lessons from a failed PPP model
Hyderabad’s metro was often cited as the right template for urban infrastructure through private capital. Instead, it now serves as a cautionary tale. Now considered a failed model, it linked the fate of an essential public service to the financial performance of a single company. Once L&T began bleeding losses, the project lost momentum. The government’s intervention is an implicit admission that some assets are too central to be left vulnerable to corporate fatigue.
The move also carries political weight. The BRS government had allowed the project to drift, with minimal pressure on L&T to deliver. By contrast, Revanth Reddy has not only intervened but also taken on the risks directly. For a city weary of traffic chaos and stalled projects, this signals a willingness to confront inherent structural problems and provide a solution rather than pass the buck.
Opposition leaders like K.T. Rama Rao (KTR) have claimed that governments cannot run such projects efficiently. That argument ignores the irony that it was private management that created the current gridlock. It also proved, yet again, how privatisation of every public facility for personal or political gains can go seriously wrong. Efficiency does not come from ownership labels but from accountability. With the metro now answerable to the State, there is at least political pressure to deliver results quickly.
A test of governance
However, the takeover is not a magic wand. Managing debt, ensuring timely execution of Phase 2, and integrating the metro with other forms of public transport will all be difficult tasks. Nevertheless, the fundamentals have shifted: the State now has both the authority and responsibility to act.
The Hyderabad Metro Rail project began as an experiment in privatised urban infrastructure. It is now becoming a test of whether government leadership can restore momentum and credibility. If Revanth Reddy succeeds, the metro could transform from a stalled showcase into the backbone of Hyderabad’s urban future.
There are lessons to be learned as well: infrastructure that serves millions cannot be held hostage to financial paralysis. By reclaiming the metro, Telangana has settled a corporate dispute and given Hyderabad a second chance at building the city in a way it deserves and at a pace it desires.