BRS demands cancellation of HAM road contracts amid alleged irregularities

The BRS has accused the Congress government in Telangana of irregularities in awarding HAM road contracts, claiming tenders were inflated by 25 per cent, adding Rs 5,000 crore burden on the state.

Hyderabad: Bharat Rashtra Samithi (BRS) has on Friday demanded the cancellation of HAM (Hybrid Annuity Model) road contracts awarded by the Congress government in Telangana, alleging large-scale irregularities, pointing out that the tenders were finalised at 25 per cent above estimates, imposing an additional burden of over Rs 5,000 crore on the State exchequer.

In an informal interaction with mediapersons at Telangana Bhavan,BRS Legislature Party deputy leader T Harish Rao said the BRS had already raised these issues during the recent Assembly budget sessions, along with evidence of manipulation in the tendering process. He stated that contracts in the Roads and Buildings (R&B) and Panchayat Raj departments were being awarded through inflated bids to favour select contractors.

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He said R&B tenders, which were initially pegged at Rs 11,000 crore, were escalated to nearly Rs 15,000 crore, while Panchayat Raj works valued at Rs 6,000 crore were likely to cost up to Rs 8,000 crore.

“Excess bidding is placing a heavy financial strain on the government,” he remarked.

Criticising the financing model, the former Irrigation Minister pointed out that 60 per cent of project costs will be raised through bank loans and repaid over 15 years in 30 installments with interest. This will significantly increase long-term liabilities. He accused Chief Minister A Revanth Reddy of resorting to both direct and indirect borrowings, which will become a burden on future governments.

Harish Rao also opposed the provision of 10 per cent mobilisation advances in these contracts. He noted that the Congress had introduced this policy during the Pranahita–Chevella project, which Revanth Reddy had earlier criticised as “Dhanayagnam” instead of “Jalayagnam.” “The same policy is now being implemented,” he said.

Harish Rao said the BRS government had scrapped mobilisation advances after coming to power in 2014 and maintained strict checks, recalling any tender exceeding five per cent above estimates.

“Now, even 25 per cent excess is being ignored,” he said.

Demanding an immediate cancellation and recall of all such tenders, he accused the Congress government of looting public money to favour its Delhi leaders. He alleged that a single company was set to secure 15 contracts and said evidence would be presented soon.

He also raised concerns over extensions granted to retired and serving senior engineers overseeing the tender process, despite earlier assurances by the Congress leadership against such practices.