State Govt Launches Major Road Development Initiative Across Telangana Under HAM
First phase to build over 13,000 km of roads; govt assures timely payments to contractors
Hyderabad: The state government on Tuesday launched a major road development programme under the hybrid annuity model (HAM) with built-in clauses for work-based payment, for the first time in the state. The first phase will cost Rs 6,478.33 crore.
The HAM will be extended to building of 7,947 km of roads through 17 packages under the panchayat raj department, and another 5,190 km under the roads and buildings department through another 17 packages in the first phase. The government plans to invite tenders for the remaining 6,810 km by December.
Deputy Chief Minister Mallu Bhatti Vikramarka, roads minister Komatireddy Venkat Reddy and panchayat raj minister Seethakka discussed funding and execution norms at a meeting with bankers and contracting agencies.
Bhatti said the state will contribute 40 per cent of the project cost and said that contractors would not face payment hurdles. Stressing the importance of road development, especially as part of the government’s “Telangana’s Rising” vision, he also pointed out that the previous BRS government left a heavy financial burden by committing works worth Rs 1.75 lakh crore and issuing tokens for Rs 45,000 crore without clearing dues.
With Chief Minister Revanth Reddy and senior officials working to stabilise finances, the situation was improving and the government was committed to resolving contractors’ difficulties, Bhatti said.
Venkat Reddy said the model benefitted all stakeholders, as contractors get a steady income, banks finance the projects which will meet NHAI standards, and the public gains faster, safer travel, improved trade, tourism, and livelihoods.
GFX
The strategic plan includes building four-lane roads from district headquarters to Hyderabad, two-lane roads connecting mandals to districts, and all-weather roads linking villages.
The government aims to upgrade unmetalled roads to blacktop standards and improve connectivity to isolated gram panchayats.
Under HAM, government will pay 40% cost in 10 instalments of 4% each. Ten per cent of the cost will be paid as advance.
Contractors will invest the remaining 60%.
Payments will be made every six months based on performance, adjusted for inflation.
This ensures stable returns for investors, minimal risk, and maintenance of high-quality roads.
Once built, contractors will handle maintenance, including pothole repairs, signage, drainage, and lighting for 15 years.
