Overview
- BRS, which went public Friday, called for cancellation of Hybrid Annuity Model road tenders in Telangana, citing inflated bids and a claim that one firm could bag about 15 works.
- T. Harish Rao said bids ran about 25% over estimates, lifting Roads and Buildings works from roughly Rs 11,000 crore to nearly Rs 15,000 crore and Panchayat Raj works from Rs 6,000 crore to about Rs 8,000 crore.
- He criticized a plan to fund 60% of project costs with bank loans to be repaid over 15 years, saying the repayments with interest would add heavy long-term liabilities.
- He opposed a proposed 10% mobilisation advance, an upfront payment to contractors that increases early cash outflow and can favor firms with weaker liquidity.
- The reports carried no response from the Congress government or independent verification of the allegations.