Synopsis: The Telangana government has initiated four-laning work for 149 km of roads in the eastern and south eastern parts of Hyderabad under the Hybrid Annuity Model (HAM). This article covers the overview, details, areas expected to benefit from the upgrades, key features and more.
The city of Hyderabad has got a significant infrastructure boost as 14 road projects of ₹338 crore were launched under the Hybrid Annuity Model (HAM). The projects span 149 km of roads in the eastern and south-eastern suburbs of the city. The projects include Hayathnagar, Thorrur, Koheda, Anajpur, Abdullapurmet, Bandaraviryal, Kuntloor, Pasumamula, Taramatipet, Injapur, Brahmanpally, Ragannaguda, and Maheshwaram–Medchal corridor. These roads will enhance connectivity among growth centres in the suburbs, industrial corridors and the Vijayawada highway corridor, facilitating future urban growth.
All 14 Road Projects and their Length
The roads aim to enhance the connectivity and ease of travel on the transport network of east Hyderabad by connecting residential localities, industrial areas, logistics centers and connecting with the major roads to facilitate quicker and smoother commute.
Impact on Hyderabad’s connectivity and development
- Better connectivity: The four-laning works will improve the connectivity of the roads in the eastern and south eastern suburbs of Hyderabad, connecting residential areas, industrial areas and commercial hubs.
- Enhanced travel time: Expansion of roadways and improvements in junctions should help to alleviate congestion and allow faster travel speeds for commuters who travel daily.
- Improved highway connectivity: Enhanced connections will be created with NH-65 (Hyderabad-Vijayawada Highway), Outer Ring Road (ORR) and the soon to be Regional Ring Road (RRR).
- Enhance logistics and industries: Good road connectivity will help to move goods more easily, benefiting, among others, logistics companies, industrial parks, MSMEs and warehouses in the region.
- Improved connectivity: Prospective growth of real estate is anticipated in areas like Hayathnagar, Abdullapurmet, Maheshwaram, and surrounding areas, given the improved connectivity.
- Economic benefits: The projects will provide jobs during the construction phase, and will contribute to the long-term economic development by enhancing infrastructure and investment opportunities.
How the Hybrid Annuity Model (HAM) works
It is called the Public-Private Partnership (PPP) model, which is a public sector partnership with private financial resources to build roads. Under the HAM, private developers bear 60% of the cost of the project during the construction, and the government bears 40%. The government reimburses private developers after completion of the road with fixed annuity payments for a concession period as well as operation and maintenance fees.
HAM is less risky than the toll-based PPP model since the risk of traffic and revenue falls on the government. Funding is shared and payments guaranteed, which helps alleviate financial pressure on developers, incentivizes private investment and allows for faster completion of road projects. Developers should take responsibility for the roads they build for several years, and that should motivate them to build quality roads that will last.
Conclusion
With the start of 14 four-laning road projects worth ₹338 crore, Telangana is taking another giant stride to make Hyderabad’s transport system stronger. The project strengthens the connectivity, alleviates congestion, enables the growth of industry and residential areas and increases overall mobility. The program, part of the Hybrid Annuity Model (HAM), will be a key element in ensuring the long-term health and urban and economic development of Hyderabad.
