Telangana to Launch Major Rural Road Development Initiative Worth Rs 6,294 Crore

Telangana is set to embark on an ambitious rural road construction programme following the completion of tender formalities by the Panchayat Raj and Rural Development Department. The initiative, valued at Rs 6,294.81 crore, will see the development of 2,162 roads spanning 7,449.50 kilometres across the state through the Hybrid Annuity Model (HAM).

The project has been structured into 17 distinct packages. To date, tenders for 14 packages have been finalized and work orders distributed to contractors. One package remains under approval, while the department expects to conclude bidding for the remaining two packages by July 2. Once all tender procedures conclude, construction activities will commence simultaneously across all districts.

Construction Timeline and Maintenance

The state has mandated that all contractors complete construction work within a 30-month timeframe. Following completion, the selected contractors will be responsible for maintaining these roads for 15 years.

Payment and Cost Structure

Under the HAM framework, the government will disburse 40 percent of project costs during the construction phase through 10 equal instalments of 4 percent each, tied to measurable progress at various stages. The remaining 60 percent will be paid during the 15-year maintenance period in semi-annual instalments as per contractual terms. The payment structure incorporates provisions for cost escalation, applicable interest, and other permissible charges outlined in the agreement.

District-Wise Distribution

The programme extends across multiple districts with varying allocations. Adilabad leads in terms of road length, with 134 roads totalling 555.67 kilometres at an estimated cost of Rs 453.79 crore. Medak carries the highest project cost at Rs 500.30 crore for 166 roads covering 586 kilometres. Other major beneficiary districts include Warangal, Karimnagar, Khammam, Nizamabad, Mahabubnagar, and Rangareddy.