BRS MLA Vemula Prashanth Reddy alleges ₹8,000 crore scam in Telangana road tenders under HAM model
Hyderabad: BRS MLA and former minister Vemula Prashanth Reddy levelled serious allegations of corruption against the Congress government in Telangana, claiming a ₹8,000 crore scam in road project tenders issued under the Hybrid Annuity Mode (HAM). Addressing a press conference at Telangana Bhavan, he said corruption scandals were emerging almost every day.
Vemula Prashanth Reddy HAM road scam charges
Reddy alleged that the government was operating through secret deals. “Cabinet ministers fight over contracts, and the Chief Minister divides the profits to silence them,” he said. He also referred to a recent dispute between two ministers over a tender that the Chief Minister reportedly resolved privately.
He cited several recent controversies, including the liquor hologram scam, and claimed that the Chief Minister sacrificed a senior officer to cover up internal conflicts. Reddy further alleged that workers at Deccan Cements were threatened by armed men, and even a minister’s daughter blamed the Chief Minister for the incident.
Criticism of Hybrid Annuity Mode tenders
Reddy criticised the use of the HAM model, saying it inflated costs per kilometre by about 85%. He argued that road projects originally estimated at ₹9,000 crore had turned into ₹15,000 crore bids. “This means ₹8,000 crore has been looted from the public,” he said.
Comparing HAM with the Central Road Fund (CRF) model, Reddy said CRF roads cost ₹1.75 crore per kilometre, while HAM projects cost ₹3.30 crore. He also pointed out that the government issued orders for both schemes within ten days, yet with conflicting rates.
According to him, the winning companies received 10% of the project cost—about ₹1,500 crore—upfront. “This money can be easily misused,” he said. Reddy added that the State was also paying ₹2.5 crore per year for maintenance per kilometre, taking total costs to ₹6 crore per road stretch.
Demand for probe and cancellation of tenders
He explained that under HAM, the government funds 40% while private firms contribute 60%, but the latter borrow heavily from banks. “In the end, taxpayers pay the interest and bear the debt burden,” he said. Reddy described the system as a “trap for the public” and called for immediate cancellation of all HAM tenders.
He urged engineers, officials, and contractors to stay away from what he termed “government-backed robbery.” Reddy demanded a CBI investigation and appealed to Union ministers G. Kishan Reddy and Bandi Sanjay Kumar to intervene. “If any honesty remains, they must act now,” he declared.
BRS leaders join the press meet
BRS MLAs Kaleru Venkatesh and Dr. K. Sanjay, former Grandhalaya Chairman Ayachitam Sridhar, and ex-BC Commission member K. Kishore Goud accompanied Reddy during the press conference.