TELANGANA ₹12,000 CRORE STATEWIDE ROAD DEVELOPMENT

The Telangana government has announced a landmark ₹12,000 crore road infrastructure development plan, aiming to transform the state’s transportation network over the next few years. This ambitious initiative seeks to upgrade and modernize more than 13,000 km of roads across both urban and rural regions, significantly improving connectivity, safety, and economic opportunities.

A Two-Pronged Development Approach

The plan is divided into two major segments. First, the Roads & Buildings Department will oversee the improvement of 5,190 km of state and national highways within Telangana. This component is allocated a budget of ₹6,478 crore and will focus on widening carriageways, repairing worn-out stretches, strengthening bridges, and ensuring better drainage systems along the routes.

The second major component targets rural road networks, which are often lifelines for villages. The Panchayat Raj and Rural Development Department will manage the upgrade of 7,947 km of rural roads at a cost of around ₹6,000 crore. This includes converting mud roads to all-weather blacktop surfaces, widening narrow roads to accommodate growing traffic, and ensuring better last-mile connectivity to villages.

Hybrid Annuity Model for Efficiency

To ensure timely execution and better quality control, the government will adopt the Hybrid Annuity Model (HAM) for these projects. Under HAM, contractors will receive a portion of the payment during construction, with the remainder paid over several years based on performance and maintenance standards. This approach not only reduces the initial financial burden on the government but also incentivizes contractors to maintain road quality for the long term.

Officials have stated that the HAM approach has proven effective in other states for delivering projects on time while maintaining durability. This marks a strategic shift in how Telangana plans and executes large-scale infrastructure works.
Tendering for Additional 6,810 km by December

In addition to the 13,000 km already earmarked, the state is preparing tenders for another 6,810 km of roadworks. This phase will focus on:

Four-lane highways to improve inter-district travel speeds.

Mandal headquarters to district headquarters connectors for better administrative and trade access.

Upgrades to rural and internal roads to link agricultural hubs with markets and processing centers.

The tendering process is expected to be completed by December, ensuring that work can commence in early 2026.
Boosting Economic and Social Development

Better roads are more than just infrastructure they are economic catalysts. The government projects that these upgrades will:

Enhance agricultural supply chains by reducing transport time for farm produce.

Attract industrial investments due to improved logistics.

Promote tourism by making heritage sites and natural attractions more accessible.

Improve emergency response times, particularly in rural areas where medical and disaster relief access has been challenging.

Chief Minister A. Revanth Reddy emphasized that this plan is not merely about pouring concrete but about “building pathways to progress.” He highlighted that rural road connectivity would directly uplift small farmers, traders, and self-help groups by linking them more efficiently to urban markets.

Job Creation and Local Benefits

The massive scale of the project is expected to generate thousands of jobs for engineers, construction workers, machine operators, and suppliers. Local small-scale contractors and material suppliers will also benefit from subcontracts, ensuring that a portion of the funds circulate within local economies.

Additionally, the government is prioritizing the use of durable materials and modern construction techniques to minimize maintenance costs in the long run. These include polymer-modified bitumen for better weather resistance and geotextile reinforcements in flood-prone areas.

A Vision for the Future

This statewide plan aligns with Telangana’s broader goal of positioning itself as a model state for infrastructure development in India. With urbanization on the rise and rural economies expanding, the road network will be crucial in ensuring balanced growth across all districts.

Once completed, the project will represent one of the largest coordinated infrastructure upgrades undertaken in the state’s history, signaling Telangana’s commitment to long-term development and equitable connectivity.