This is actually a very good news and similar subsidy programs are introduced in most countries in the world. There are various benefits of subsidising the transport even up to level where the government has to incur minor losses such as in this project but overall you will be saving a lot more money + public relief is a big bonus. I actually do not know any country in the world which does not provide subsidy in the transport or did not provide subsidy for a long time.
For example in London people below the age of 19 and over 65 travel free of cost, people who has minor disabilities, police officers, families of staff working in the transportation companies (such as bus/train drivers) all travel free of cost. Those who are unemployed get reduction in the normal fair, tourists might get free passes if they buy a package/passes, people who are never going to work again might get freedom pass if they qualify the certain criteria. Now look what is left... only middle aged working class people who would be paying fair for the tickets they purchase. This is technically another form of subsidy that encourages people to use the public transport even if the company/government has to incur some losses.
Go to Geneva, It's free transportation for tourists as well - I don't know the price of trains, buses, boats in Geneva for local residents but tourist like myself was allowed to take any local boat, train or bus completely free of cost.
and not to forget the benefit of saving natural reserves and keeping the prices of commodities down to very lowest price possible. The subsidy you will be given on natural reserves might be much higher than the subsidy you might already be giving to the public in the transportation, you will also reduce oil imports. Imagine 50,000 people are travelling in 20,000 cars or 50,000 people are travelling in 800-1000 buses... which way are you going to save more gas/petrol? --- and then traffic issues also solved since you are going to have less congestion on the roads and if properly planned, the same subsidised project might earn billions of rupees in profit once the entire project is running on full scale and people's habit is changed from using private transport to public transport.