Govt Plans To Develop 4-Lane Roads Under HAM On Stretches
Sources said that 12,000 km of roads out of 29,000 km under the R&B network through HAM is based on the National Highways model, but will not force the commuters to pay toll tax.
Hyderabad: A 43-km-long stretch between Bhongir on NH 163 and Chityal on NH 65 to link the Warangal and Vijayawada highways is among the government’s plans to develop 100 km of roads into four lanes under the hybrid annuity model.
The other stretches planned are Medchal- Shamirpet and Dundigal-Medchal, about 10 km each, running parallel to Outer Ring Road (ORR), the 15-km Hayathnagar-Anajpur road cutting through the ORR and Hayathnagar to Taramatipet, 10 km via Kuntloor. “These are presently part of the plans under HAM to be developed into four lanes, with a median in between,” informed a higher official of R&B to Deccan Chronicle.
Sources said that 12,000 km of roads out of 29,000 km under the R&B network through HAM is based on the National Highways model, but will not force the commuters to pay toll tax. Phase 1 of this flagship project for widening, strengthening and maintenance of roads has been sanctioned.
A total 419 roads spanning 5,824.27 km have been grouped into 32 packages with an approval cost of Rs 11,399 crore. “The government pays 40 per cent of the project cost during the construction period in 10 equal installments of 4 per cent each, based on physical progress at various stages,” the official said.
“Under HAM, the concessionaire funds the construction and maintains the roads for 15 years in the specified condition. The remaining 60 per cent of the cost is paid during the 15-year operation and maintenance (O&M) period in the form of annuity, disbursed every six months. Payments include price escalation, interest, and other applicable costs as per the agreement provisions,” the official said.
In wake of contractors seeking relaxations, Telangana is studying best practices adopted in the other states. The contractors have asked to submit insurance surety bonds (ISB) in the place of bank guarantees. This is a financial instrument where insurers guarantee contractor obligations, and is a cost-effective alternative to traditional bank guarantees (BGs) for bid & performance security in NHAI projects.
In AP the letter of credit (LOC) is being implemented. These letters ensure payments to contractors for work completed on road projects. Deputy Chief Minister Mallu Bhatti Vikramarka is likely to review the situation with R&B officials on December 18.