Hyderabad Plans Seamless Metro Handover Audit
Hyderabad’s Metro network is poised for a major governance shift as the State prepares to assume full control of the system, with a central public sector financial institution expected to lead a detailed forensic audit of Phase One. The exercise is intended to ensure clarity on finances, operations and liabilities before the transition from the current Public-Private Partnership model to a government-owned framework, according to senior officials familiar with the development.
The impending audit comes after the State announced its decision to acquire the 69.2-km Phase One network from the private concessionaire for ₹15,000 crore. The move followed the concessionaire’s reluctance to integrate its line with the proposed 76.4-km Phase Two expansion, a plan the Centre has insisted upon to simplify passenger movement and enable the formation of a State-Centre joint venture. Such a joint venture would also help the Metro access low-interest financing from institutions like the Asian Development Bank and the Japan International Cooperation Agency—crucial for cities seeking resilient, low-carbon public transport systems.
Officials indicate that the designated audit agency will carry out a title verification study, assess outstanding liabilities and review land parcels allocated under the original PPP agreement. In addition, the team is expected to evaluate capital costs, operational expenditure and maintenance practices. This scrutiny is seen as essential not only for financial transparency but also for building a sustainable operational model under public ownership. A key concern is the rapid attrition reported within the private concessionaire and its operations partner. With the existing operations contract set to expire within a year, the government must secure all technical data ranging from signalling software and traction systems to safety protocols and maintenance documentation to maintain uninterrupted services. “A seamless transfer of knowledge is non-negotiable if the Metro is to continue running safely and efficiently,” said an official.
Urban transport experts note that the transition marks an inflection point for Hyderabad, which has long positioned its Metro as an anchor for cleaner commuting. Integrating Phase One and Phase Two under unified public management could streamline route planning, improve service standardisation and strengthen the city’s shift towards equitable, low-emission mobility. The outcomes of the audit are expected to shape not only financial negotiations but also the future trajectory of Hyderabad’s broader transport ecosystem. The audit is expected to conclude in about three months, aligning with the Centre’s likely decision on the joint venture. If executed well, the shift could place Hyderabad among Indian cities demonstrating how metro systems can evolve from profit-driven models into public assets designed for inclusive growth, gender-safe commuting and climate-aligned urban development.
Hyderabad Plans Seamless Metro Handover Audit
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