HYDERABAD: Telangana's rural road works under the hybrid annuity model (HAM) face a further delay. Although tenders for all 17 packages have been finalised, Panchayat Raj department officials said work is now likely to begin only around Sankranti because funding has not been tied up.
The project
- Phase 1: 2,162 roads covering 7,449.50 km, estimated at ₹6,294.81 crore
- Tendered in 17 packages
- The government pays 40% of the cost and contractors finance 60%, which the state repays in six-monthly instalments
- Telangana is the only state using HAM for panchayat roads
Why the delay
Contractors are preparing sites and approaching banks for loans, which officials expect to be sanctioned within about two months. Appointed Day agreements will be signed once loans come through, after which contractors have 18 months to finish.
The government is negotiating a HUDCO loan for its share, a borrowing that also covers about ₹9,000 crore for the Roads and Buildings department's HAM roads. Officials said the interest rate talks will decide when work picks up. Start dates had earlier been set for after Dussehra and then after Diwali.
