The sudden departure of N.V.S. Reddy, who served as Managing Director for both Hyderabad Metro Rail (HMR) and Hyderabad Airport Metro Limited (HAML) since 2007, marks the close of a remarkable era. His extensive tenure began during the time of a unified Andhra Pradesh, under Chief Minister Dr. Y.S. Rajasekhara Reddy.
Reddy was formally integrated into the State government in 2009 and retired in 2016. However, his crucial role in overseeing the development and launch of the metro’s first phase – encompassing 69.2 km across three corridors between 2012 and 2017 – led to continuous annual extensions, keeping him at the helm.
The government’s decision to replace Reddy might stem from a major point of contention: L&T Metro Rail Hyderabad (L&TMRH), the builder and operator of the first phase, has reportedly offered to sell its equity to either the Central or State government. This offer is a direct response to its unwillingness to integrate its existing infrastructure, including trains and systems, with the proposed second phase. This ambitious expansion spans 76.4 km across five new corridors and is estimated to cost a staggering ₹24,269 crore.
The Central government, whose financial backing is sought for a joint venture to secure sovereign guarantees for international funding, has allegedly made this integration a prerequisite for approval. While HAML had meticulously prepared a master plan, L&T’s senior management reportedly refused to endorse it, citing the financial and operational difficulties experienced during Phase One.
The situation escalated with a deliberate leak to the media, revealing L&T’s reluctance to integrate services. The company cited significant losses of ₹5,000 crore and a perceived lack of government support. This public disclosure likely displeased Chief Minister A. Revanth Reddy, potentially leading to the recent leadership transition.
N.V.S. Reddy, an Indian Railways Accounts Service (IRAS) officer from the 1983 batch, gained invaluable early experience working alongside the esteemed E. Sreedharan on the Konkan Railway project. His career later saw him deputed to the Andhra Pradesh government, where he contributed to the power sector. He then took on the role of MMTS’s second MD and also served as Additional Commissioner (Traffic & Transportation) at the Municipal Corporation of Hyderabad (MCH). During these roles, he oversaw the successful completion of MMTS Phase One (45 km) and the construction of vital flyovers at Begumpet, Punjagutta, Malakpet, and Chandrayangutta, along with numerous junction improvements.
Reddy pioneered the concept of a Bus Rapid Transit System (BRTS) when MMTS Phase II faced delays. He quickly shifted focus to HMR Phase One, championing it as the world’s largest public-private partnership (PPP) metro project, with an initial budget of ₹12,132 crore. Guided by former Chief Secretary S.P. Singh and Planning Commission advisor Gajendra Haldea, Reddy was instrumental in replacing the antiquated Tramways Act with the Central Metro Railways Act. This critical legislative change empowered States to independently pursue metro projects, free from Indian Railways’ direct oversight. His contributions also shaped the Model Concessionaire Agreement, which underpinned L&TMRH’s involvement.
Throughout his career, Reddy navigated the complexities of the Maytas fiasco and served under consecutive Congress administrations. Post-Telangana’s formation, he encountered new hurdles with the new government’s demands for alignment modifications. The subsequent decade under the BRS rule proved challenging; despite no new lines being initiated, he successfully brought the 71.2 km first phase to completion, adeptly balancing public interests with private sector efficiency. Although confident in his ability to steer Phase Two under the current government, a confluence of internal conflicts ultimately made his position unsustainable.