Telangana rolls out Phase I of ₹6,295 crore rural road plan under HAM
The Telangana government has launched a major rural road development programme under the Hybrid Annuity Model (HAM), becoming the first State in the country to adopt this financing model for rural road construction and maintenance. Chief Minister A. Revanth Reddy inaugurated the initiative by unveiling a pylon near the Gattamma Temple in Mulugu district headquarters on Sunday.
Under Phase I of the HAM programme, the State will develop 2,145 roads covering 7,448 km at an estimated cost of ₹6,294.81 crore. This includes 934 km of new blacktop (BT) roads to connect 176 Gram Panchayats (GPs) that currently have no road connectivity. Another 5,490 km of existing BT roads will be strengthened and upgraded, while 1,024 km of single-lane BT roads carrying heavy traffic will be widened to intermediate lane roads.
The Phase I works are expected to benefit 3,036 Gram Panchayats across all 96 rural Assembly constituencies in the State. According to the Panchayat Raj Engineering Department (PRED), the roads have been selected based on their importance and their potential to improve connectivity between gram panchayats and mandal and district headquarters, as well as the State capital.
The government plans to develop 18,472 km of Panchayat Raj roads under HAM in three phases. The first phase covers 7,448 km, the second 5,676 km, and the third 5,348 km. The programme aims to provide all-weather roads to unconnected GPs, upgrade earthen roads, and strengthen the existing road network.
Under the Hybrid Annuity Model, the government’s responsibility does not end with construction. The construction period is 30 months, after which the concessionaire will maintain the roads for 15 years. The State government will bear 40% of the construction cost, while the concessionaire will bear the remaining 60%. The State will repay the concessionaire’s share in 30 annuities over 15 years. The government has accorded administrative sanction of ₹16,007.56 crore for the programme, including maintenance costs for the 15-year period.
Telangana has a Panchayat Raj road network of 69,318 km. Of this, 30,797 km (44.44%) comprises un-metalled roads, while BT roads account for 25,916 km (37.38%). Of the 12,760 GPs in the State, 12,426 already have road connectivity, while 334 remain unconnected. The Phase I HAM works are planned to be completed by March 2029.
Panchayat Raj and Rural Development Minister Danasari Anasuya Seethakka said, “Telangana is implementing the HAM system for rural road construction for the first time in the country. It is not merely about laying new roads but also about maintaining them with quality over the long term.”
