Road repairs delayed as contractors stay away from tenders in Telangana

Road repairs in Telangana are stalled despite the monsoon's arrival, with contractors reluctant to bid due to unpaid dues. The government plans to implement the Hybrid Annuity Model (HAM) to revamp road infrastructure and address contractors’ concerns.

Hyderabad: Even as the monsoon has set in across the State, motorists continue to endure the ordeal of driving on bad roads in several districts, with repair works delayed this year due to poor response from contractors.

Typically, the Roads and Buildings (R&B) department identifies damaged stretches well in advance and prepares an action plan to take up repairs before the onset of the monsoon. Tenders are floated accordingly, with emphasis on completing the works during summer.

---

This year, however, though the department had identified over 2,500 km of roads for repair under short-term measures, the works could not be taken up due to a lack of response from contractors. Despite recalling the tenders four times, participation remained poor for reasons yet to be determined, a senior department official said.

A similar situation prevails with several Panchayat Raj and Rural Development (PRRD) roads.

It may be recalled that members of the Telangana Civil Contractors Welfare Association staged a protest at the chambers of Deputy Chief Minister Mallu Bhatti Vikramarka in the Secretariat on March 7, demanding clearance of long-pending bills. The contractors alleged that the R&B department owed dues to the tune of Rs.100 crore, while PRRD department bills amounted to nearly Rs.65 crore. Most of these were minor contracts worth less than Rs.10 lakh.

To overcome the impasse, the State government is planning to implement the Hybrid Annuity Model (HAM) scheme, under which road laying and maintenance of 5,190 km of R&B roads and 7,947 km of PRRD roads will be taken up. The proposed expenditure includes Rs.16,414 crore for R&B roads and Rs.16,780 crore for PRRD roads.

Under the HAM scheme, the State government will pay 40 percent of the estimated project cost within 2.5 years, while contractors will bear the remaining 60 percent. Following the defect liability period of 2.5 years, the government will repay the contractors’ share in instalments over 15 years.

In view of the lacklustre response to short-term tenders, officials plan to hold meetings with contractors later this month to explain the HAM model and address any concerns.

While a few other States have implemented the scheme, it remains a new concept in Telangana. There may be apprehensions among contractors regarding repayment terms and other modalities, which the department intends to clarify during the upcoming interactions, the official added.