Telangana to launch road development project for Rs 12,400 Cr; tenders to be floated soon

Hyderabad: Telangana government is set to launch an ambitious road development programme at an estimated cost of Rs 12,400 crore.

The move is aimed at enhancing connectivity across the state.

Deputy Chief Minister Bhatti Vikramarka and Roads and Buildings Minister Komatireddy Venkat Reddy announced that tenders for the first phase of the project will be invited shortly.

Massive road network expansion across Telangana

The Roads and Buildings (R&B) department will oversee the construction of 5,190 km of roads with an estimated outlay of Rs 6,478 crore.

In parallel, the Panchayat Raj and Rural Development department will upgrade 7,947 km of rural roads for Rs 6,000 crore.

Together, these projects represent a total investment of over Rs 12,400 crore aimed at improving state and rural connectivity.

Hybrid Annuity Model to drive project execution

The projects will be executed under the Hybrid Annuity Model (HAM), which integrates the Engineering, Procurement, and Construction (EPC) and Build, Operate, Transfer (BOT) models.

Under HAM, the government finances 40% of the project cost in phased installments, while private contractors fund the remaining 60%, recovering investments through performance-linked annuity payments adjusted for inflation.

Komatireddy Venkat Reddy noted that this model reduces financial risk for contractors and ensures sustained maintenance for 15 years, resulting in durable and safer roads.

Vision to connect every Village, Mandal, and District Headquarters

At a roadshow hosted by the National Academy of Construction (NAC), Bhatti Vikramarka articulated the government’s goal to create a seamless road network connecting every village to its mandal, mandals to district centers, and districts to Hyderabad.

The plan includes four-lane highways from district centers to Hyderabad, two-lane roads connecting mandals to districts, and upgrading rural routes, including converting mud roads to bitumen surfaces.

Infrastructure as a Catalyst for Economic Growth

Bhatti stressed the transformative impact of road infrastructure on the state’s economy. “Well-developed roads will enable easier transportation of goods from remote areas, promote industrial growth, and create new employment opportunities for Telangana’s youth,” he said.