Now Reading: Poor contractor response delays Telangana STP tenders under HAM
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Poor contractor response delays Telangana STP tenders under HAM
The Story in Brief
Telangana has extended the deadline for sewage treatment plant (STP) tenders under the Hybrid Annuity Model (HAM) to 2 November, after contractors raised concerns over the payment mechanism. The Rs 1,314-crore project covers 101 urban local bodies across three packages, with the Centre funding 50 per cent of the cost under the Swachh Bharat Mission and the State repaying its share in annual instalments.
The initial deadline was 27 July. After extensions to 8 September and 12 October, the Public Health department has now pushed the date to 2 November. Package I covers 44 ULBs in Sangareddy, Rangareddy, Nizamabad and Mahabubnagar divisions at Rs 580 crore, with works scheduled for 24 months. Package II covers 30 ULBs in Adilabad, Karimnagar and Warangal at Rs 430 crore. Package III covers 27 ULBs in Nalgonda and Khammam at Rs 304 crore.
A senior department official said contractors had ‘apprehensions’ over the bill payment process. Under HAM, the State repays its 50 per cent share over a concession period that can extend to 10, 15 or 20 years.
Indian Opinion Analysis
The repeated deadline extensions signal that contractors are not confident of timely payments under a repayment model that stretches up to 20 years. The HAM framework shifts upfront financing to private players, who must then wait for annual instalments from the State. With road projects under the same model yet to take off, the STP scheme faces the same trust deficit. The next date to watch is 2 November: if the response remains poor, the department may have to revise payment terms or the model itself.
Source: telanganatoday.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
