Telangana Launches Rs 62.9 Billion HAM Project For Rural Roads

24 Oct 2025 CW Team

Calling it one of the state government’s most prestigious infrastructure programmes, Seethakka said the HAM project will significantly improve the condition of Panchayat Raj roads. “The shape of rural roads will completely change under this model, enhancing transport links and improving access for people in remote areas,” she said.

The tender notification for the HAM projects will be released on Friday, with work beginning soon after the completion of the tendering process. In the first phase, a total of 2,162 roads covering 7,449.5 kilometres across 96 constituencies will be developed under 17 project packages.

The Telangana government has adopted the HAM method for the construction, upgradation, and maintenance of roads connecting Gram Panchayats to Mandal Centres, Mandal Centres to District Headquarters, and District Headquarters to the State capital.

Under this model, 40 per cent of the project cost will be paid by the government during the construction phase, while the remaining 60 per cent will be raised by contractors through bank financing. Post-completion, the contractors will be responsible for road maintenance for 15 years.

The Rs 62.9 billion initiative will be implemented in three phases, with the techno-economic feasibility study for Phase I already completed. The works were selected by the Panchayat Raj Engineers based on proposals submitted by local MLAs and MPs. The state Cabinet has approved the project proposals prepared by the Panchayat Raj Engineering Department (PRED).

Administrative and financial approvals have been granted for 17 packages, and the tender process will commence circle-wise this week. Following Minister Seethakka’s instructions, Engineer-in-Chief Joga Reddy confirmed that all arrangements are in place to initiate bidding, and notifications have been published. “Steps are being taken to ensure work begins immediately after the tender process concludes,” he added.

Minister Seethakka urged both national and international construction firms to participate in the bidding process, emphasising that this flagship project would mark a new era in Telangana’s rural infrastructure and economic development.

Panchayat Raj Minister Dhanasari Anasuya (Seethakka) announced on Wednesday that the implementation of the Hybrid Annuity Model (HAM) will transform rural road infrastructure across Telangana, strengthening connectivity and giving a major boost to the rural economy. Calling it one of the state government’s most prestigious infrastructure programmes, Seethakka said the HAM project will significantly improve the condition of Panchayat Raj roads. “The shape of rural roads will completely change under this model, enhancing transport links and improving access for people in remote areas,” she said. The tender notification for the HAM projects will be released on Friday, with work beginning soon after the completion of the tendering process. In the first phase, a total of 2,162 roads covering 7,449.5 kilometres across 96 constituencies will be developed under 17 project packages. The Telangana government has adopted the HAM method for the construction, upgradation, and maintenance of roads connecting Gram Panchayats to Mandal Centres, Mandal Centres to District Headquarters, and District Headquarters to the State capital. Under this model, 40 per cent of the project cost will be paid by the government during the construction phase, while the remaining 60 per cent will be raised by contractors through bank financing. Post-completion, the contractors will be responsible for road maintenance for 15 years. The Rs 62.9 billion initiative will be implemented in three phases, with the techno-economic feasibility study for Phase I already completed. The works were selected by the Panchayat Raj Engineers based on proposals submitted by local MLAs and MPs. The state Cabinet has approved the project proposals prepared by the Panchayat Raj Engineering Department (PRED). Administrative and financial approvals have been granted for 17 packages, and the tender process will commence circle-wise this week. Following Minister Seethakka’s instructions, Engineer-in-Chief Joga Reddy confirmed that all arrangements are in place to initiate bidding, and notifications have been published. “Steps are being taken to ensure work begins immediately after the tender process concludes,” he added. Minister Seethakka urged both national and international construction firms to participate in the bidding process, emphasising that this flagship project would mark a new era in Telangana’s rural infrastructure and economic development.

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