HAM Roads Project in Limbo, Roads Condition Turned Worse With No Repair Works

Hyderabad:Ministers and Congress MLAs are making a beeline to Chief Minister A. Revanth Reddy with a request to expedite road repairs, stating that the poor condition of roads was bringing a bad name to the government. They have pointed out that road works under the ₹18,006-crore hybrid annuity model (HAM) remained stalled even three months after the Chief Minister laid the foundation stone on July 28.

With neither the HAM projects taking off nor repairs to damaged roads being undertaken, the situation was worsening, they told the Chief Minister. Expressing concern over the deteriorating condition of the road network, they called for Revanth Reddy’s urgent intervention to address the problem.

The finance department has not yet approved the ₹9,161-crore Hudco loan sought by roads and buildings department to pay mobilisation advances to contractors to begin works under the HAM.

The delay has worsened road conditions, particularly on routes connecting district headquarters with Hyderabad and with mandal headquarters. Heavy rain, floods and inadequate maintenance since 2022 have further damaged roads, causing hardship to commuters and increasing accident risks. Roads and buildings minister Komatireddy Venkat Reddy reportedly took up the issue with Chief Minister A. Revanth Reddy and sought his intervention in resolving the issue with finance department.

Under HAM, the government has decided to develop 6,092.37 km of R&B roads at a cost of ₹13,006.27 crore across 441 roads in 34 packages. Another 18,472 km of panchayat raj roads were to be developed at a cost of ₹6,000 crore.

The government was to bear 40 per cent of the project cost, while contractors would finance the remaining 60 per cent through bank loans. The government’s share would be paid as mobilisation advances, and the contractors’ investment repaid through 30 semi-annual annuities over 15 years. Construction was scheduled to take 30 months, followed by 15 years of maintenance, with Phase-I works targeted for completion by March 2029.

To mobilise its share for the R&B projects, the department sought a ₹9,161-crore loan from the Housing and Urban Development Corporation (Hudco). Hudco agreed to extend the loan with a government guarantee, and an agreement was signed with the Road Development Corporation (RDC) recently. However, the approval remained pending with the finance department, official sources said.

Sources added that Hudco offered interest rates of 8.6 per cent for the portion repayable within five years and 9.1 per cent for the amount repayable over 15 years. The finance department reportedly sought a uniform rate of 8.6 per cent for the entire loan and asked the R&B department and RDC to negotiate with Hudco. They sought a revision, but there is no response from HUDCO, they said. Without mobilisation advances, contractors have refused to commence work, leaving the projects stalled despite the award of contracts.

The funding impasse has also disrupted routine maintenance. Officials did not prepare the usual repair and patchwork plans for roads covered under HAM, expecting them to be upgraded or reconstructed under HAM. The government also declined requests from the R&B and panchayat raj departments for repair funds, citing the proposed HAM works.

Officials estimated that ₹490 crore was required for permanent repairs to damaged roads across the state, but the government is yet to decide on releasing the funds. With both construction and repairs stalled, motorists continue to face deteriorating road conditions, delays and increased accident risks.