Hyderabad Metro Rail (HMR) is a rapid transit system, currently under construction, for the city of Hyderabad. It is in Secant Operational model. It is being implemented entirely on public-private partnership (PPP) basis, with the state government holding a minority equity stake. To respond to the rising public transport needs and mitigate escalating vehicular traffic in the twin-cities of Hyderabad and Secunderabad, the erstwhile Andhra Pradesh Government and the South Central Railway zone jointly launched the Multi Modal Transport System (MMTS) in August 2003. This Rs. 167 crores worth transport system, 50 percent of which was financed by the State Government and the remaining by the Central Government, used the already existing rail lines of the Indian Railways in and around Hyderabad making it a highly cost effective one. However, within months of starting of its operation, it became apparent that it has been met with poor response. The reasons for this dismal response include poor punctuality of trains, lack of dedicated tracks for MMTS services, and absence of feeder bus services limiting the network’s reach. The bidding process was completed by July 2008 and awarded to Maytas which failed to achieve financial closure for the project as per schedule By March 2009. In July 2009, the Andhra Pradesh Government canceled the contract and called for fresh bids for the project. In the July-2010 rebidding process, Larsen & Toubro (L&T) emerged as the lowest bidder for the ₹121.32 billion (US$1.9 billion) project. L&T came forward to take up the work for about ₹14.58 billion (US$230 million) as viability gap funding as against the sanctioned ₹48.53 billion (US$760 million). Groundbreaking for the project was conducted on 26 April 2012 the concessionaire started the pillar erection on the same day for Stage-I and on 6 June 2012 for Stage-II. The work for Corridor 2 has been delayed due to traders in Koti and Sultan Bazar demanding realignment of the route to safeguard traders and old age heritage markets. Though the ridership of the MMTS has increased over the years, the failure in augmentation of the services in line with the increasing ridership has led to its unpopularity among 150,000 passengers who avail the services daily. This notwithstanding, the Union Ministry of Urban Development, in October 2003, gave its nod for the Hyderabad Metro Rail Project and directed the Delhi Metro Rail Corporation to conduct a survey on the project. Involving an investment of over Rs.4000 crores, this project was seen necessary in view that the population of Hyderabad was forecasted to reach 13.6 million by the year 2021. According to the initial plan, the metro was to be connected with the already existing MMTS to provide commuters with alternate modes of transport. Simultaneously, the proposals for taking up the construction of MMTS Phase-II were also taken forward. LIKE Delhi, Hyderabad's metro project is ambitious in scope and swift in execution. Following a construction period of just five years, the first phase, comprising three lines totalling 71 km with 66 stations will be completed in 2017. It is also a technical pioneer, bringing CBTC to an Indian city for the first time. The L&T Hyderabad project will have an automated ticketing system with features such as contactless smart card based ticketing, slim automatic gates, payment by cash and credit/debit card, passenger operated ticket vending machine and provision of common ticketing system. It will also have a provision of NFC-based technology to enable usage of mobile phones as fare media and high performance machine to avoid long queues. Samsung Data Systems India, a subsidiary of South Korean firm Samsung, has been awarded the automatic fare collection system package for the L&T metro rail project. The package involves design, manufacture, supply, installation, testing and commissioning of the system.

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