KTR Criticizes Unfair Budget: Hyderabad Metro Denied Necessary Funding

In the nuanced political and social tapestry of India, regional disparities and the equitable distribution of national resources have long been topics of intense debate and scrutiny. The Bharat Rashtra Samithi (BRS) working president, K.T. Rama Rao (KTR), recently found himself at the heart of this ongoing dialogue. His discontent with the BJP-led NDA government’s financial decisions—specifically, the exclusion of the Hyderabad Metro Rail expansion from the Budget 2024 allocations—has sparked a significant amount of attention and discussion.

Rama Rao took to X to voice his concerns and query the political calculus of the Telangana state’s alliance with the BJP. His critique was not merely a lament; it was a pointed examination of reciprocity—or the lack thereof—in political alliances. KTR underscored the Telanaganan support for the BJP by mentioning the eight MPs sent to their ranks. Yet, despite this support, he noted that the Hyderabad Metro Rail project did not receive the anticipated financial backing in the most recent budget, raising questions about the value and reward of political loyalty and support.

In his comments, KTR juxtaposed Telangana’s situation with that of other states, illustrating a stark contrast in the allocation of funds for metro rail projects across the country. He laid out the numbers clearly: Uttar Pradesh, Maharashtra, Gujarat, and Delhi received substantial support for their urban mobility projects, with funds allocated in the thousands of crores. This comparison put into sharp relief the absence of any allocation for the Hyderabad Metro expansion, painting a picture of regional disparity and overlooked needs.

This sentiment was amplified as KTR pointed out the broader landscape of funding across the country. States like Karnataka, Madhya Pradesh, Bihar, Tamil Nadu, and Kerala indeed received significant support for their infrastructure projects. The Rapid Rail Project between Delhi and Ghaziabad alone was allotted Rs. 1,106.65 crore, further underscoring the felt disparity by the Telangana state leadership.

The saga of dissatisfaction articulated by KTR found another layer of complexity with the mention of Larsen & Toubro’s (L&T) stake in the Hyderabad Metro. With a significant 90 percent holding, L&T’s disclosure about considering the sale of its stake due to declining ridership casts a long shadow on the project’s sustainability and future. The ridership, which peaked at 550,000 in November 2023, saw a substantial dip to 480,000, ostensibly affected by the Telangana government’s initiative to offer free bus rides to women. This move, while progressive in promoting women’s mobility and safety, inadvertently impacted the metro’s financial viability.

R Shankar Raman, the company’s whole-time director and chief financial officer, indicated in a conversation with BT TV, plans to monetize the asset post-FY26. This revelation is part of a broader strategy by L&T to streamline its portfolio by divesting from non-core businesses, including its substantial stake in the metro project. Such strategic shifts, while astute from a business standpoint, underscore the precarious balance between public service and profitability, especially in infrastructure projects heavily reliant on consistent public patronage.

To wrap up, the unfolding narrative around the Hyderabad Metro Rail project, its funding woes, and the potential divestment by L&T encapsulates the multifaceted challenges of urban development and political cooperation in India. The intricate dance between regional aspirations, federal oversight, and corporate interests plays out in a saga that is as compelling as it is consequential for the future of urban mobility in Hyderabad and beyond.

For readers keen on keeping abreast of such riveting developments, DeFi Daily News provides an insightful window into the broad spectrum of issues impacting the dynamic field of decentralized finance and beyond. As we navigate through these complex socio-economic narratives, staying informed has never been more entertaining.