Telangana to develop 7,448 km rural roads under HAM in first phase
Telangana has adopted the Hybrid Annuity Model (HAM) for rural road development, becoming the first state to implement HAM for such roads. Phase I covers 7,448 km across 2,145 roads, with a total estimated cost of ₹6,294.81 crore, and a 30-month construction window followed by 15 years of maintenan
Key takeaways
- Telangana adopts HAM for rural roads, becoming the first state to do so for rural road projects.
- Phase I includes 2,145 roads totaling 7,448 km with a 30-month construction window and 15 years of maintenance by a concessionaire.
- The state bears 40% of construction costs, with 60% funded by the concessionaire and repaid over 15 years via annuities.
- ₹16,007.56 crore is sanctioned for HAM across 15-year maintenance, with a total Phase I estimated at ₹6,294.81 crore.
What Happened
Telangana announced the adoption of the Hybrid Annuity Model (HAM) for rural road construction and maintenance, marking the first use of HAM for rural roads in the country, according to the Panchayat Raj Engineering Department (PRED). Chief Minister A. Revanth Reddy unveiled a HAM pylon near the Gattamma Temple in Mulugu district to launch the initiative.
In Phase I, 2,145 roads totaling 7,448 km will be developed at an estimated cost of ₹6,294.81 crore. The plan includes 934 km of new BT roads to connect 176 Gram Panchayats that currently lack road connectivity. An additional 5,490 km of existing BT roads will be strengthened and upgraded, and 1,024 km of single-lane BT roads carrying heavy traffic will be widened to intermediate lane roads. The works are expected to benefit 3,036 Gram Panchayats and cover all 96 rural Assembly constituencies in the state.
The government has sanctioned ₹16,007.56 crore for the HAM programme, including maintenance costs for 15 years. Under HAM, construction is to be completed in 30 months, with the concessionaire responsible for maintenance for 15 years. The state will fund 40% of the construction cost, with the concessionaire covering 60%, and repayment of the concessionaire’s share will occur through 30 annuities over 15 years. The plan envisions completing Phase I by March 2029 and expanding to a total of 18,472 km across three phases.
Why It Matters
The move positions Telangana as a pioneer in deploying HAM for rural road development in India, potentially altering how rural connectivity projects are financed and managed. The approach combines state funding with private sector involvement for long-term maintenance, aiming at all-weather connectivity and the upgrading of un-metalled and existing BT roads across a large rural network.
Background
The project targets a vast Panchayat Raj road network in Telangana. The state’s rural road network includes both BT and un-metalled segments, with a portion of Gram Panchayats currently without road connectivity. The HAM strategy is framed as a long-term responsibility-sharing arrangement between the government and a concessionaire, with a defined construction window and a maintenance period extending beyond completion.
Key Facts
- Phase I covers 2,145 roads totaling 7,448 km.
- Estimated cost for Phase I is ₹6,294.81 crore.
- 934 km of new BT roads will connect 176 Gram Panchayats without road connectivity.
- 5,490 km of existing BT roads will be strengthened and upgraded.
- 1,024 km of single-lane BT roads carrying heavy traffic will be widened to intermediate lane roads.
- Phase I aims to benefit 3,036 Gram Panchayats across all 96 rural assembly constituencies.
- The state has sanctioned ₹16,007.56 crore for the HAM programme, including 15 years of maintenance costs.
- Construction is planned to be completed in 30 months; maintenance will be for 15 years by the concessionaire.
- State share of construction cost under HAM is 40%; the concessionaire covers 60% and is repaid through 30 annuities over 15 years.
- The broader plan envisions 18,472 km of Panchayat Raj roads in three HAM phases, with Phase I spanning 7,448 km.
What Happens Next
The government indicated Phase I works should be completed by March 2029. After Phase I, subsequent phases are planned to cover further sets of rural roads, continuing under the HAM framework with ongoing maintenance obligations.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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