L&T Mulls Exiting Hyderabad Metro
RAILWAYS & METRO RAIL

L&T Mulls Exiting Hyderabad Metro

Larsen & Toubro (L&T) is contemplating the possibility of exiting the Hyderabad Metro project as the business suffers from the adverse effects of free bus rides offered by the state government. The company is evaluating its options amid financial challenges caused by reduced metro ridership due to the availability of free bus transportation.

The decision to potentially exit the Hyderabad Metro project comes as a result of declining revenues and profitability, attributed to the state government's initiative of providing free bus rides to commuters. This move has led to a significant decrease in metro ridership, impacting L&T's revenue streams and overall business viability.

L&T's consideration of exiting the Hyderabad Metro underscores the challenges faced by infrastructure developers in navigating regulatory and competitive landscapes. The company's decision will have implications for the future of the metro project and its stakeholders, including commuters and investors.

Hyderabad Metro, a significant urban transportation project, plays a crucial role in enhancing connectivity and easing traffic congestion in the city. However, the viability of the project is now in question due to the financial constraints imposed by the availability of free bus rides.

L&T's potential exit from the Hyderabad Metro project highlights the need for a sustainable business model that can withstand external disruptions and government policies. It also underscores the importance of collaboration between public and private sectors to ensure the success and sustainability of large-scale infrastructure projects like the Hyderabad Metro.

Larsen & Toubro (L&T) is contemplating the possibility of exiting the Hyderabad Metro project as the business suffers from the adverse effects of free bus rides offered by the state government. The company is evaluating its options amid financial challenges caused by reduced metro ridership due to the availability of free bus transportation. The decision to potentially exit the Hyderabad Metro project comes as a result of declining revenues and profitability, attributed to the state government's initiative of providing free bus rides to commuters. This move has led to a significant decrease in metro ridership, impacting L&T's revenue streams and overall business viability. L&T's consideration of exiting the Hyderabad Metro underscores the challenges faced by infrastructure developers in navigating regulatory and competitive landscapes. The company's decision will have implications for the future of the metro project and its stakeholders, including commuters and investors. Hyderabad Metro, a significant urban transportation project, plays a crucial role in enhancing connectivity and easing traffic congestion in the city. However, the viability of the project is now in question due to the financial constraints imposed by the availability of free bus rides. L&T's potential exit from the Hyderabad Metro project highlights the need for a sustainable business model that can withstand external disruptions and government policies. It also underscores the importance of collaboration between public and private sectors to ensure the success and sustainability of large-scale infrastructure projects like the Hyderabad Metro.

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?