MMTS rail project to Yadagirigutta stuck since 2016; State yet to pay Rs 279 crore, says Centre

Hyderabad: The Hyderabad to Yadagirigutta Multi-Modal Transport System (MMTS) rail project, sanctioned in 2016, remains incomplete due to funding delays.

The project, covering a 33-km stretch from Ghatkesar to Yadadri, was approved at a cost of Rs 412 crore under a cost-sharing model. However, the Government of Telangana has yet to deposit its share of funds, preventing the commencement of construction.

In response to an unstarred question No 5125 in the Lok Sabha on April 2, 2025, minister of Railways Ashwini Vaishnaw provided an update on the project’s progress and financial status.

Previous MMTS expansion completed

The MMTS project for Hyderabad and Secunderabad, originally sanctioned at Rs 1,169 crore, was executed on a cost-sharing basis with the Government of Telangana contributing twice the amount of the Ministry of Railways in a 1:2 ratio. The entire expansion was commissioned in March 2024, but the State Government still owes Rs 279 crore as part of its financial commitment.

The completed expansion included the following routes, totalling 82 km:

1. Ghatkesar – Moula Ali C Cabin Quadrupling (12 km)

2. Telapur – Ramchandrapuram New Line (5 km)

3. Medchal – Bolarum Doubling (14 km)

4. Falaknuma – Umdanagar Doubling (14 km)

5. Sanathnagar – Moula Ali C Cabin Bypass Line Doubling (22 km)

6. Secunderabad – Bolarum Electrification (15 km)

Reasons for Delay in Yadadri MMTS Line

Despite being sanctioned in 2016, the Ghatkesar-Yadadri rail line has not progressed due to a lack of financial contribution from the Telangana government. Minister Ashwini Vaishnaw confirmed that the project remains on hold due to the non-deposit of funds by the State Government.

He also outlined additional challenges that could affect the timeline of railway projects, stating: “Completion of railway projects depends on various factors like land acquisition by the State Government, forest clearance by the officials of the forest department, shifting of infringing utilities, statutory clearances from various authorities, geological and topographical conditions of the area, law and order situation at the project site, and the number of working months available in a year due to climatic conditions. All these factors affect the completion time of the projects.”

Outlook and budget allocation

The 2025 Union Budget has not allocated any new funds specifically for the Yadadri MMTS line, as the project’s progress depends on the pending financial commitment from the Telangana government.

The Central government has reiterated that it will uphold the cost-sharing model agreed upon in 2016, making the project’s completion contingent on the State Government’s financial support.

Until the funding issue is resolved, the MMTS extension to Yadagirigutta will remain stalled, impacting commuters who would benefit from improved connectivity between Hyderabad and the temple town of Yadadri.