- Vemula Prashanth Reddy accuses Telangana Congress govt of corruption in road projects
- Criticism mounts over Hybrid Annuity Mode costs and secret deals among ministers
Former minister and BRS MLA Vemula Prashanth Reddy launched a strong attack on the Telangana Congress government, alleging an Rs. 8,000 crore scam in road project tenders executed under the Hybrid Annuity Mode (HAM). Speaking at a press conference at Telangana Bhavan, Reddy claimed fresh scandals are emerging daily and accused the government of deep-rooted corruption.
Reddy described the government as riddled with secret deals, with cabinet ministers fighting over contracts while the Chief Minister allegedly intervenes to split profits and suppress disputes. He cited a recent clash between two ministers over a tender that was resolved privately by the Chief Minister. The former minister also alleged that workers at Deccan Cements faced armed threats, blaming senior political figures and implicating the Chief Minister in the scandal involving liquor holograms.
Focusing on HAM tenders, Reddy criticized the project’s inflated costs, which raised expenses per kilometer by 85%. He argued that projects worth Rs. 9,000 crore under HAM have been bid out at Rs. 15,000 crore, effectively defrauding taxpayers of Rs. 8,000 crore. He contrasted HAM with the Central Road Fund (CRF) scheme, which builds roads for Rs. 1.75 crore per kilometer, whereas HAM’s cost is Rs. 3.30 crore. He highlighted suspicious timing with orders for both schemes issued within 10 days but with differing rates.
Reddy exposed the financial mechanics of HAM, noting companies receive 10 percent upfront (up to Rs. 1,500 crore) from the state, alongside Rs. 2.5 crore per kilometer as annual maintenance fees, resulting in excessive costs. He warned that HAM’s 40 percent state funding paired with 60 percent private investment creates a debt trap, where the government ultimately pays heavy loan interests burdening common citizens.
Demanding the immediate cancellation of all HAM tenders, Reddy warned engineers, officials, and major contractors to avoid participating in what he called ‘government-supported robbery.’ He urged Telangana’s Union ministers, G. Kishan Reddy and Bandi Sanjay Kumar, to advocate for a Central Bureau of Investigation probe into the scams.
Joining Reddy at the press conference were MLAs Kaleru Venkatesh and Dr. K. Sanjay, former Grandhalaya chairman Ayachitam Sridhar, and ex-BC Commission member K. Kishore Goud, showing a united front against alleged corruption.
