L&T favoured, TGSRTC neglected?

metro india news  I hyderabad

The State government’s decision to take over the Hyderabad Metro Rail from Larsen & Toubro (L&T) has sparked strong criticism, with RTC employees alleging that while a private project is being prioritised, the long-pending issues of the Road Transport Corporation (RTC) continue to be ignored.

Speaking in the Assembly on March 28, Chief Minister Revanth Reddy stated that in order to implement Metro Phase II, it was necessary for the State government to take over the metro network from L&T. He explained that the government had prepared plans to expand the metro network across the Hyderabad Core Urban Region in response to demands from various sections. After a detailed review of the obstacles in taking up Phase II A and B as a government project, and to address concerns raised by the Central government, a decision was taken to acquire the metro network from L&T. The Assembly subsequently approved the proposal.

As part of the takeover, the government has agreed to assume L&T’s stake worth around Rs. 7,000 crore along with loans amounting to nearly Rs. 13,000 crore, taking the total financial commitment to about Rs. 15,000 crore. Based on recommendations from the Cabinet Sub-Committee, Committee of Secretaries, and financial experts, the government expressed readiness to complete the acquisition and formally moved forward during the recent Assembly sessions.

However, RTC employees argue that while the government has shown urgency in mobilising Rs. 15,000 crore for the metro project within a short span, it has failed to address the financial distress of RTC, which has been serving people for decades. The corporation transports nearly 75 lakh passengers daily and over one crore passengers during peak seasons and festivals, ensuring connectivity and reliability across the State and beyond.

Employees allege that the government has neither cleared pending dues nor extended adequate support. Under the Mahalakshmi scheme, which provides free travel for women in RTC buses, reimbursements from the government have reportedly been reduced month after month, resulting in pending dues of about Rs. 2,500 crore. At the same time, RTC’s own debts stand at around Rs. 3,000 crore.

In addition, pending payments to employees and workers have accumulated to nearly Rs. 10,000 crore. These include Dearness Allowance arrears pending since 2017, retirement settlements for retired staff, and pending benefits for employees currently in service such as Pay Revision Commission dues. 

Contributions to the CCS society amounting to Rs. 800 crore, Provident Fund dues of Rs. 1,200 crore, and SRBS (SBT) dues of Rs. 250 crore are also pending. Altogether, employees say the dues have reached alarming levels.

RTC unions question why the government, which is willing to spend Rs. 15,000 crore to take over the metro project, is not focusing on clearing RTC’s long-pending liabilities. They point out that while the metro operates within limited areas catering to parts of Hyderabad, RTC provides extensive services not only across Telangana but also to distant destinations such as Mumbai, Vijayawada, Pune, Shirdi, Chennai, Goa, Tirupati, and Nagpur, serving passengers across neighbouring states as well.

Employees express concern that while the government has shown confidence in a privately operated metro system, it is not extending similar support to RTC, a public sector organisation that has consistently delivered services for decades. They allege that the pattern of decisions raises questions about the government’s priorities and intentions.

Unions also highlight that the government has not taken steps to enable RTC to independently procure electric buses, while policies appear to favour private players. They demand that just as the government has mobilised substantial funds for the metro takeover, it should also clear RTC’s dues of a similar magnitude, revive the corporation, and ensure its long-term sustainability.