Telangana Officials Report Lower HAM Tender Excess Than Gujarat and Maharashtra

Telangana Roads and Buildings Minister Komatireddy Venkat Reddy held a three-hour review meeting to address allegations of excessive tender quotes in Hybrid Annuity Model (HAM) road projects. Officials clarified that Telangana recorded significantly lower excess bid percentages compared to other states, noting that Gujarat saw excess bids up to 66% and Maharashtra around 47%. The increased project costs were attributed to global economic pressures, including sharp rises in fuel, bitumen, steel, and cement prices, alongside GST and maintenance responsibilities. Bitumen prices nearly doubled from ₹44,000 to ₹89,000 per metric tonne during the tender period. Additional burdens such as advanced machinery usage, 15-year maintenance obligations, and interest components contributed approximately 9.3% to the costs. Currently, the Roads and Buildings Department is executing 441 road works worth ₹13,006.27 crore, while the Panchayat Raj Department handles 2,162 works valued at ₹6,250 crore. The Minister plans to discuss the final aspects of these projects with Chief Minister A. Revanth Reddy later in the week.