Telangana awaits answers on road contracts

Harish Rao’s Rs 18,000 crore HAM Scam Charge

A credible response would involve placing the following in the public domain without delay:

1. The estimated value of each contract, with a clear break-up of civil works, contingencies, and other components.
2. Copies of pre-qualification details and eligibility criteria applied.
3. Names of all participating companies, along with the L1, L2, L3 bidders and their respective rankings.
4. Full details of every quotation submitted and the exact amounts quoted by each bidder.
5. Clarification on the 5 per cent limitation — who authorised its waiver? Was it the Cabinet, a minister, or bureaucrats? Under what circumstances was the ceiling removed?
6. A side-by-side comparison of EPC versus HAM values for comparable road stretches, highlighting the exact difference in project costs.
7. An assessment of the additional fiscal burden on the state exchequer and, by extension, on the people through annuity payments.

Barely 24 hours after Bharat Rashtra Samithi (BRS) deputy leader and former minister T Harish Rao dropped a political bombshell, Telangana is once again gripped by allegations of massive corruption in infrastructure. Rao has accused the Congress government of orchestrating an Rs 18,000 crore scam in Hybrid Annuity Model (HAM) road projects executed through the Roads & Buildings (R&B) and Panchayat Raj departments. The former minister claims the irregularities involve inflated tenders, excess mobilisation advances, and a cosy contractor syndicate that has bypassed standard safeguards.

With roughly Rs 12,000 crore in R&B works and Rs 6,000 crore under Panchayat Raj, the scale is staggering. Rao alleges that tenders, which historically closed below estimates, are now being awarded 15-20 per cent above projected costs. The government allegedly introduced a 10 per cent mobilisation advance policy — releasing nearly Rs 1,800 crore upfront — that could be diverted for political funding in upcoming elections elsewhere.

He further points to the removal of an earlier 5 per cent ceiling on premium bids, bypassing of the Committee of Tenders, and instances where only two bidders participated, suggesting pre-arranged allotments. “The Congress government was releasing excess mobilisation advances and raising curtains for a Rs 18,000 crore scam,” Rao declared at a press conference.

The Hybrid Annuity Model itself is not new. Under HAM, the government funds 40 per cent during construction while private players arrange the remaining 60 per cent. In return, the state repays the private investment plus interest through fixed annuity payments spread over 15-20 years. This contrasts sharply with the Engineering, Procurement and Construction (EPC) model, where the entire cost is borne upfront by the government. Critics argue that shifting to HAM with allegedly inflated bids transfers a heavier long-term burden onto taxpayers. Every extra crore in project cost balloons the annuity outflow from the state exchequer, ultimately funded through taxes or borrowings. Rao’s charge implies that the difference between realistic EPC estimates and the awarded HAM values could run into thousands of crores, saddling future generations with avoidable debt.

Public interest demands immediate transparency. As an opposition MLA and former minister who oversaw similar projects, Rao’s accusation cannot be dismissed lightly. Citizens of Telangana have every right to scrutinise the facts. The Congress government, which has aggressively pushed road infrastructure under HAM to improve connectivity, must counter the claims with hard data rather than silence or deflection.

Releasing these documents would either substantiate Rao’s claims or expose them as politically motivated exaggeration. In an era of digital governance and RTI, there is no justification for withholding tender-related data when such colossal sums are involved. Past BRS governments faced similar scrutiny over projects like Kaleshwaram; the Congress cannot claim immunity simply because it is now in power.

The political theatre surrounding the allegation is equally telling. Rao has demanded immediate cancellation of all HAM tenders and a judicial probe by a sitting High Court judge. He has vowed to approach the Central Vigilance Commission, Reserve Bank of India, and other agencies. The BRS plans to raise the issue during the ongoing Assembly budget session on Roads and Buildings. Yet questions linger: will Harish Rao take the matter to its logical conclusion? Will he file a public interest litigation, launch a statewide people’s movement, or allow the storm to fizzle out once Assembly debates subside? BRS leaders have a history of aggressive posturing followed by selective follow-through. If the party truly believes an Rs 18,000 crore scam is underway, silence or half-measures would erode its credibility as the principal opposition.

Equally puzzling is the muted response from other stakeholders. The Bharatiya Janata Party (BJP), which routinely attacks both Congress and BRS on corruption, has yet to issue a statement on this specific charge. Neither have major NGOs or civil society groups — usually quick to demand probes into infrastructure irregularities — weighed in. The absence of cross-party outrage or independent verification raises suspicions of selective indignation. In Telangana’s polarised politics, where Congress accuses BRS of Kaleshwaram irregularities and BRS counters with fresh scams almost weekly, public fatigue is real. If neither BJP nor BRS escalates this into a sustained campaign, the Congress could escape scrutiny unscathed. That would be a disservice to taxpayers and a potential electoral miscalculation.

With municipal elections looming and the next Assembly polls not far off, both opposition parties risk boomerang effects. Voters remember unfulfilled promises of accountability. Leaving the Congress “scot-free” on a multi-thousand-crore infrastructure deal could haunt BRS and BJP when they seek anti-corruption votes. Conversely, if the allegations prove hollow, Rao’s credibility — already tested on Singareni coal and power sector claims — will take another hit.

At its core, this controversy is about governance fundamentals. HAM contracts were designed to attract private capital and accelerate projects without immediate fiscal strain. When executed transparently, they serve public interest. When opacity creeps in — through waived ceilings, excess advances, or limited bidders — suspicion is inevitable. The Congress government’s flagship road programme, touted as a game-changer for rural connectivity, now stands under a cloud. Only full disclosure and an independent probe can clear the air.

Telangana’s people deserve roads, but they also deserve the truth about how those roads are funded and awarded. The ball is firmly in the government’s court. Failure to respond with facts will only amplify the narrative that Rs 18,000 crore may have changed hands under the guise of infrastructure development. In a democracy, sunlight remains the best disinfectant. The coming days will reveal whether Harish Rao’s charge sparks genuine accountability or merely another round of political theatre. Metro India, couple of months ago, has risen the same issues and urged the government to take remedial steps.