The Panchayat Raj Engineering Department (PRED) is preparing to issue tenders for a large-scale road upgradation project valued at Rs 62.9 billion under the Hybrid Annuity Model (HAM).

The initiative covers the construction, upgradation, and maintenance of key rural roads linking Gram Panchayats to mandal headquarters, mandal headquarters to district headquarters, and district headquarters to the State capital.

The Engineer-in-Chief of PR Hyderabad will issue the tenders on 17 October for 17 project packages, encompassing 2,162 roads and spanning a total of 7,449.5 kilometres across 96 constituencies.

Under the HAM framework, the government will fund 40 per cent of the project cost during construction, while contractors will mobilise the remaining 60 per cent through bank financing. Contractors will also be responsible for maintaining the upgraded roads for 15 years following a 2.5-year construction phase.

Panchayat Raj and Rural Development Minister Danasari Anasuya (Seethakka) stated that the project will play a transformative role in improving rural connectivity and boosting the local economy. “This flagship initiative will modernise village roads and strengthen transportation networks that are vital to rural development,” she said.

The scheme is expected to significantly improve last-mile connectivity, enhance agricultural transport efficiency, and promote socio-economic growth across Telangana’s rural areas.