Telangana Uses Hybrid Annuity Model to Speed Up Road Development

21 Mar 2025 CW Team

The Telangana government is set to adopt the Hybrid Annuity Model (HAM) to accelerate its road infrastructure development initiatives. This financing model, which combines public and private investment, is expected to enhance project efficiency while optimizing resource utilization.

Under the HAM framework, the state government will contribute 40 per cent of the total project cost, while private developers will fund the remaining 60 per cent. This approach is designed to attract private sector participation, easing the financial burden on the government while ensuring timely project execution.

As part of its infrastructure expansion strategy, Telangana has outlined plans to develop 17,000 kilometres of rural roads by 2028, with an estimated investment of Rs 280 billion. The initiative aims to strengthen connectivity in remote areas, facilitating economic growth and improving access to essential services for rural populations. By enhancing transportation networks, the project is expected to support agricultural supply chains, promote local businesses, and improve overall mobility.

The integration of HAM into the state’s development strategy aligns with a broader focus on leveraging public-private partnerships to expand critical infrastructure. This model is anticipated to not only accelerate project completion but also maintain high construction standards. By reducing financial risks for private investors and ensuring long-term maintenance of roads, the approach is set to transform Telangana’s transportation network, supporting economic and social development across the state.

With this initiative, Telangana aims to create a more robust and sustainable road infrastructure system, addressing connectivity challenges and fostering regional development in the coming years.

News source: THE HANS INDIA

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