Telangana Cabinet’s PPP Model for Rural Roads: Toll Fees and Public Concerns

In a recent move, the Telangana state government announced a decision to develop Panchayat Raj and Rural Development (PR&RD) and Roads and Buildings (R&B) roads using the Public-Private Partnership (PPP) model. This decision, aimed at enhancing road connectivity in both rural and urban areas, is stirring concern across the state, particularly among rural transport operators and farmers. A potential introduction of toll fees is at the heart of the issue, as the state aims to finance road development costs by charging a fee from road users, sparing only residents within a 3-5 km radius of the toll locations.

What Does the PPP Model Mean for Telangana’s Roads?

The Public-Private Partnership (PPP) model is a widely used financing approach for large-scale infrastructure projects. Under this model, the government collaborates with private entities that provide funding, design, and maintenance of roads. In exchange, these private players can collect toll fees to recover their investment over a specified period. Although commonly used by the National Highways Authority of India for expressways and high-traffic routes, Telangana is considering applying this model to rural roads, raising questions about its impact on local communities and economies.

Key Points on the Telangana Government’s PPP Decision

• Road Development Plan: The PPP model targets rural roads under PR&RD and R&B departments, encompassing a network of roads connecting villages to mandal and district headquarters.
• Investment Requirement: Estimates suggest that Rs. 25,000 to Rs. 28,000 crores will be required to upgrade Telangana’s Road network over the next four years.
• Exemption Clause: While villagers within a 3-5 km radius of toll plazas will be exempted from toll fees, all other road users will be required to pay.

This toll system, although offering partial relief to residents near toll locations, could impose an additional financial burden on farmers, transport operators, and commuters from neighboring areas.

Potential Impacts of Toll Fees on Rural Communities

1. Increased Transportation Costs
   The imposition of toll fees could result in higher costs for transportation, especially affecting those who transport goods like agricultural products. Farmers, who already operate on thin profit margins, may face rising expenses that could negatively impact their earnings.
2. Impact on Small Transport Operators
   Many small-scale transport operators rely on rural roads to connect passengers and goods between remote villages and towns. Additional toll fees could force these operators to increase fare prices, placing a greater financial strain on rural communities who depend on affordable transport options.
3. Agricultural Sector Challenges
   Farmers transport produce to market yards, often over long distances. Toll fees, added to transportation costs, could affect the pricing of agricultural products, thus impacting both farmers and consumers.
4. Livelihood Concerns for Transport Drivers
   Rural drivers, including those operating auto-rickshaws and jeeps, have already reported reduced income due to free public bus services for women, which led to lower bookings. The added cost of toll fees could further erode their earnings, intensifying their financial challenges.

Expert Insights on the PPP Model for Rural Road Development

According to experts, the PPP model’s viability in rural areas is uncertain. A retired PR&RD officer noted that while the PPP model might work well in urban or semi-urban regions, rural areas may struggle to attract sufficient toll revenue to make projects profitable for private investors. In urban areas, executing agencies can offset their costs by setting up advertising hoardings and recreational facilities along the roads, options that are not as feasible in sparsely populated rural areas.

Previous Road Development Achievements in Telangana (2014-2022)

The Telangana government made significant advancements in the road sector from 2014 to 2022, with achievements under the R&B department including:

• Two-lane Roads: 8,218 km
• Four-lane Roads: 321 km
• Six-lane Roads: 39 km
• Bridge Construction: 382 bridges
• Road Repairs: 8,064 km

Lessons from Hyderabad’s CRMP Initiative

The Comprehensive Road Maintenance Programme (CRMP) in Hyderabad is a notable example of PPP success within Telangana’s urban areas. Initiated by the Greater Hyderabad Municipal Corporation (GHMC), the program covers 811.95 km of city roads and involves private entities managing maintenance, repairs, and re-carpeting for five years. Importantly, this project has been funded without charging additional tolls to road users, as the corporation has taken on the financial responsibility.

This contrast between urban and rural PPP projects highlights the unique challenges of rural road PPP models, particularly regarding toll viability and potential financial burden on rural users.

Proposed PPP Model Implementation Plan by the Congress Government

The current Congress-led government in Telangana has underscored the need for extensive road connectivity improvements, especially for rural areas. The plan involves:

• Goal: Developing around 16,000-17,000 km of roads under the PR&RD and R&B purview.
• Infrastructure Upgrade: Improving connectivity from gram panchayats to mandal headquarters, mandal headquarters to district headquarters, and linking district headquarters with Hyderabad.
• District-Level Execution: Each former district will serve as a unit for the project, with senior engineers from various departments tasked with overseeing road development.

A dedicated committee is expected to be formed to study the PPP models from other states, tailoring the model to Telangana’s specific needs. This committee will also draft a Detailed Project Report (DPR) to set the stage for a structured, phased rollout of the PPP project.

Public Reaction and Political Criticism

The decision to introduce tolls on rural roads has drawn significant criticism. Opposition parties, particularly the Bharat Rashtra Samithi (BRS), argue that the toll collection system will result in financial exploitation of the public. BRS social media convenor Manne Krishank remarked on social media, “Congress government cabinet announces to introduce PPP model for mandal roads to the tune to Rs.28,000 crore. This would introduce toll collection system. Paisa vasool shuru!”

How Toll Exemptions Would Be Applied

While the toll system is set to affect many, there will be exemptions for villagers living within a 3-5 km radius of toll plazas. This partial exemption aims to mitigate the impact on residents in proximity to these roads. However, people commuting from nearby areas, including farmers and other essential transporters, would still be subject to toll fees.

Conclusion: Weighing the Pros and Cons of PPP in Rural Telangana

The adoption of the PPP model for rural roads in Telangana offers the potential for infrastructure improvement but comes with financial trade-offs for the public. Key challenges include ensuring fair toll practices, preventing economic strain on rural sectors, and guaranteeing effective toll revenue use. As the Telangana government develops its detailed plan, balancing infrastructure needs with public concerns will be crucial to making this PPP initiative sustainable and equitable for all stakeholders.

---