Hyderabad: The state government has readied a draft memorandum of understanding (MoU) for the implementation of a free MMTS services scheme in Hyderabad by reimbursing South Central Railway which operates the service.
The draft MoU, prepared by Jayesh Ranjan, special chief secretary, metropolitan area and urban development (MA&UD) department, has been submitted to the Chief Minister’s Office (CMO), as well as the law and finance departments for vetting, according to official sources.
Sources said the draft proposed to launch the free MMTS scheme for an initial period of one year, starting June 2, Telangana Formation Day. Chief Minister A Revanth Reddy is expected to convene a meeting with senior officials of the MA&UD, law, and finance departments next week to review and finalise the proposals. The approved draft will be forwarded to the South Central Railway (SCR) and the Railway Board for final clearance.
On April 19, Chief Secretary K. Ramakrishna Rao met SCR General Manager Sanjay Kumar Srivastava and held preliminary discussions on the state government’s proposal of free MMTS services.
The state government has offered to compensate SCR for any revenue losses arising from the implementation of the scheme. At present, the MMTS operates around 88 services daily, carrying between 40,000 and 45,000 passengers and generating an annual revenue of approximately `10 crore. The government has proposed to reimburse this amount to SCR if free services are introduced. The Chief Secretary also indicated that the Telangana government was willing to sign an MoU detailing all aspects of the scheme, including its financial commitments.
Responding to the proposal, the SCR General Manager had requested the state government to submit a detailed draft MoU outlining the scheme’s concept and financial obligations, which would then be referred to the Railway Board for final approval.
Following this, the state government entrusted Jayesh Ranjan with the task. He completed the exercise within 10 days and submitted it for vetting by the relevant departments to address legal and financial considerations.
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