With the current population of 7.5 million, and with a considerable floating population to the order of one million per day, the city of Hyderabad is growing at a quick pace. Apart from being the center for pharma, and some other traditional industries, the city is now emerging as a major IT, biotech, and tourism hub. However, the rapid growth of the city, the rising income levels and the corresponding rise in the number of vehicles and the lack of comfortable and efficient public transport system are causing frequent traffic jams and high pollution levels in the city. Thus, to provide a good transportation infrastructure and to solve the increasing traffic congestion in the city, the Government of Andhra Pradesh has approved the development of Mass Rapid Transit System (MRTS). This paper provides an overview of this project on the whole and a focus on its impact on property development adjacent to stations/depots.

A good traffic and transportation infrastructure is one of the pre-requisites for the survival, competitiveness, and livability of a city. Hyderabad—the capital of Andhra Pradesh—has a population of about 7 million, most of them white collar emplyoees and professionals. The fast growing IT, ITES, pharma industries and various manufacturing and business activities have made Hyderabad one of the fastest growing metropolitan cities in the country. However, lack of an efficient, reliable and comfortable Pubic Transport System (PTS) in the city has resulted in the rapid growth of personal vehicles, leading to the frequent traffic jams and higher pollution levels in the city.

Concerned about the fast deterioting traffic condition and increasing pollution levels, senior officials belonging to the different departments of the Government of Andhra Pradesh recently constituted a seven-member committee to evolve a Comprehensive Transportation Strategy. The committee provided a road map for strengthening the Public Transportation System and suggested measures to solve the traffic congestion and reduce the pollution levels of the Hyderabad Metropolitan area. The committee, after examining various traffic studies available in Hyderabad, has identified the busy traffic corridors of about 150 kms which are prone to frequent traffic jams and has come to the conclusion that there is a need to develop a Mass Rapid Transit System (MRTS) on Built, Operate, Transfer (BOT) basis in Public Private Partnership (PPP) mode in phase.

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