Hyderabad’s long-delayed MMTS Phase-II project has fallen further behind schedule, hit by pending state funding and continuing operational challenges, dealing another setback to the expansion of suburban rail services in the city.

According to a media report, the non-release of about Rs 3.81 billion by the state government has left South Central Railway unable to complete key components of the project, particularly the procurement of new MMTS train rakes.

While most of the Phase-II infrastructure has been completed using railway funds, the project was designed as a cost-sharing initiative, with the state’s contribution primarily meant for rolling stock. As a result, several newly built sections remain underutilised. Except for the Lallaguda–Sitafalmandi chord line, most Phase-II stretches are physically ready but operate only limited services due to a shortage of rakes.

Each MMTS rake costs between Rs 50 million and Rs 60 million, making service expansion unviable without the pending funds. The situation has been compounded by the failure to notify the Secunderabad–Cherlapally route via Moulali as a suburban corridor, while delays in platform extensions across multiple sections have further constrained the introduction of additional services.

Officials have also cited changing commuter behaviour. The rapid expansion of the Hyderabad Metro network and the state’s free bus travel scheme for women have reduced MMTS ridership, weakening the operational case for adding more services. “Given the low ridership, there is currently no operational scope or demand to introduce additional MMTS services, even on completed sections,” a South Central Railway official was quoted as saying.

Commuters, however, remain frustrated, with many arguing that public funds have been spent on infrastructure that is barely being used. Unless funding issues are resolved and services expanded, MMTS Phase-II risks slipping into irrelevance despite years of planning and investment.