Hyderabad Telangana Chief Minister A. Revanth Reddy Announces SIT Probe into Outer Ring Road Toll Contract

Hyderabad Telangana Chief Minister A. Revanth Reddy announced the formation of a Special Investigation Team (SIT) to probe alleged irregularities in the awarding of the Outer Ring Road (ORR) toll tenders during the previous Bharat Rashtra Samithi (BRS) regime. The announcement, made during a session in the State Legislative Assembly, came in response to a request by BRS MLA and former minister T. Harish Rao.

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Hyderabad Telangana Chief Minister A. Revanth Reddy Announces Key Highlights of the SIT Probe Announcement

• The Toll-Operate-Transfer (TOT) contract for the 158-kilometer Outer Ring Road encircling Hyderabad was awarded in May 2023.
• The contract, valued at ₹7,380 crore, was granted to IRB Infrastructure Developers Limited.
• The Congress party alleged that the tender’s valuation was significantly lower than the estimated revenue of ₹18,000 crore over 30 years.

Background of the Outer Ring Road Toll Tender Controversy

The ORR, a critical infrastructure project in Hyderabad, has been the focus of controversy since the awarding of its toll contract by the Hyderabad Metropolitan Development Authority (HMDA). Questions have been raised regarding:

• Revenue loss: The government reportedly incurred a ₹15,000 crore loss due to the adopted tendering process.
• Procedural lapses: Tenders were called without setting a minimum rate, leading to a reduced contract value.
• Timing of the tender: The toll contract was finalized just before the Assembly elections, raising concerns about undue haste.

Chief Minister’s Remarks in the Assembly

During the Assembly session, Chief Minister Revanth Reddy highlighted the irregularities and stated:

“The decisions taken during the previous regime resulted in significant revenue losses for the state. We will ensure a thorough investigation to hold accountable those responsible for this lapse.”

He also announced that the issue would be discussed further in an upcoming Cabinet meeting to determine the investigation’s procedural framework.

Steps Taken So Far

Earlier this year, the Chief Minister had ordered an investigation into the tendering process. He directed HMDA officials, including then Joint Commissioner Amrapali, to provide:

• Detailed records of the tender procedures.
• Information on the movement of files.
• Evidence of any irregularities or external influence during the process.

Officials revealed that the ORR generated annual revenues of approximately ₹600 crore before the new toll contract was awarded.

Congress Party’s Role in Hyderabad’s Development

Chief Minister Revanth Reddy, while addressing the Assembly, credited the Congress party for Hyderabad’s transformation into an international city. He cited key initiatives from the previous Congress-led government, including:

• Drinking water projects: Supply from Krishna and Godavari rivers.
• Infrastructure development: Introduction of the Inner Ring Road (IRR), international airport, and metro rail.
• Economic growth: Expansion of IT and pharma industries.
• Safety and harmony: Maintenance of law and order and promotion of communal harmony.

“The revenues of our state grew significantly because of ORR and the establishment of the international airport. These transformative projects were conceived and executed by the Congress government under Y.S. Rajasekhara Reddy (YSR),” the Chief Minister added.

Implications of the SIT Probe

The SIT probe will:

1. Investigate procedural irregularities in the tendering process.
2. Identify individuals and organizations responsible for the alleged revenue loss.
3. Recommend corrective actions to ensure transparency in future contracts.

Impact on State Revenues

The ORR, along with the international airport, has been a significant contributor to Telangana’s revenues. The alleged loss of ₹15,000 crore due to the undervalued toll contract underscores the importance of accountability and proper tendering practices to safeguard public resources.

Moving Forward

The Chief Minister’s decision to involve the SIT reflects the government’s commitment to transparency and justice. This investigation is expected to:

• Restore public confidence in the government’s handling of state resources.
• Ensure that future infrastructure projects are managed with greater scrutiny.

Conclusion

The probe into the Outer Ring Road toll contract marks a pivotal moment for Telangana’s governance. With a focus on transparency and accountability, the SIT’s findings could set a precedent for handling similar issues in the future. As the investigation unfolds, the public and stakeholders will closely watch its outcomes.