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Telangana to build 5,555 km of roads under INR 10,547 crore HAM project

#Infrastructure News#Infrastructure#India#Telangana
Last Updated : 31st Oct, 2025
Synopsis

The Telangana government has announced plans to construct approximately 5,555 kilometres of roads under a hybrid annuity model (HAM) project valued at around INR 10,547 crore. Work will cover 400 roads across 32 packages and is expected to commence by the end of the year. The ministry clarified that the HAM model carries no first-year expenditure from the government, and annual maintenance costs over 15 years will remain modest. Allegations of an INR 8,000 crore scam related to HAM projects were dismissed as uninformed and baseless by the responsible minister.

The Telangana government has revealed that it will build around 5,555 km of roads under a HAM-based scheme costing about INR 10,547 crore, with construction set to begin by year-end. The project covers 400 roads divided into 32 contract packages, marking one of the largest road-development drives the state has undertaken so far.


According to the minister, under the HAM model the state need not make any expenditure during the first year of each contract, with annual maintenance spread over 15 years at manageable cost. He added that benchmark states such as Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Karnataka and Tamil Nadu have already implemented HAM-type roads successfully.

Addressing recent accusations of a mis-handled HAM road programme estimated at INR 8,000 crore, the minister said the allegations were misinformed and politically motivated. He pointed out the difference between schemes funded under the Central Road and Infrastructure Fund (CRIF) and HAM-model roads. CRIF widening work, he said, costs about INR 1.75 crore per kilometre, while HAM works are to be built to double-lane standards as per the norms of the National Highways Authority of India (NHAI), with total 15-year maintenance cost per kilometre under INR 20 lakh rather than INR 2 crore as claimed.

To encourage wider participation, especially from small and medium contractors, the government has already released pending bills worth roughly INR 100 crore to smaller players and emphasised that the state stands as guarantor for their timely payment.

Previous road-development efforts in the state included a rural initiative under HAM worth INR 6,478 crore approved earlier this year, aimed at boosting village-to-mandal and mandal-to-district connectivity with 5,190 km of roads in Phase I. The current initiative builds on those, targeting broader state-wide connectivity upgrades and improved transportation infrastructure.

The government says work will be rolled out across all major constituencies, with tenders and contracts being finalised shortly. Officials believe this push will enhance mobility, support industrial growth and improve trade logistics across the state.

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