Tenders for HAM road projects will be rolled out next month, says Komatireddy

In an interesting observation, the Minister said Chief Minister A Revanth Reddy would respond to former Irrigation Minister T Harish Rao’s challenge for a debate on Krishna and Godavari water shares and other issues.

Hyderabad: The State Government has rejected the appeal of the Builders Association of India (BAI) Telangana Chapter to reconsider the Hybrid Annuity Model (HAM) project and asserted that the execution of the road development and maintenance works would be taken up next month. Roads and Buildings (R&B) Minister Komatireddy Venkat Reddy said on Thursday.

The BAI had maintained in a representation submitted to the Chief Minister A Revanth Reddy last month, that under the HAM model, the government would incur 40 percent of the project cost during the 2.5-year working period, while the remaining 60 percent was expected to be recovered through tolls over time.

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Considering the State’s current scenario, toll recovery was impractical, making HAM economically unviable, the builders stressed. They also referred to the Pradhan Mantri Gram Sadak Yojana (PMGSY) model, which includes both construction and a five-year maintenance period within the contract.

However, the R&B Minister asserted that there would not be any toll collection from motorists under the HAM. Initially, the contractors would invest 40 percent of contract work and the remaining 60 percent cost would be raised through bank loans for which the State government would extend surety, the Minister explained.

The loan repayment along with interest would be done in installments over a period of 10 to 15 years. This allows sufficient time for the government and there would not be any financial pressure, he said, adding that HAM was being successfully implemented in eight States.

Private consultants had conducted a study for one year to identify roads, which witness heavy traffic, for inclusion in the HAM project in the State. In a few days, a Detailed Project Report (DPR) would be prepared following a joint inspection of the consultants and department officials.

“The idea is to commence the works in HAM road works in September. Two to three contractors can form a joint venture and execute the works, which are being planned to be executed in 12 to 15 packages,” Komatireddy Venkat Reddy said.

Meanwhile, in an interesting observation, the Minister said Chief Minister A Revanth Reddy would respond to former Irrigation Minister T Harish Rao’s challenge for a debate on Krishna and Godavari water shares and other issues.

“I will not respond to Harish Rao or former Minister KT Rama Rao’s comments. It is not my range and will speak only when BRS chief K Chandrashekhar Rao turns up in the Assembly,” Komatireddy Venkat Reddy said.