The ₹13,000 crore regional ring road project that will improve connectivity between outer ring road and at least a dozen important urban clusters including Gajwel, the assembly constituency represented by chief minister K Chandrasekhar Rao, is being put back on the track of development.
The state government has agreed to share at least 50% cost towards land acquisition to execute the project.
Acquisition of land alone is likely to cost over₹ 500 crore. The revival of the project assumes significance as this is one of the projects closely monitored by KCR.
Two years ago, the Union transport and highways ministry had raised queries over the financial viability of the ₹13,000 crore regional ring road plan submitted by the Telangana government.
The Union ministry had asked the state government to get a fresh study conducted again on the ring road project and incorporate details of how the state plans to recover the huge investment that would be made to develop the 330 km regional ring road.
In its communication to the state government, the Centre had stated that the detailed project report sent to it by the state government failed to show an efficient formula and road map of recovering the investment.
The ministry had gone to the extent of stating that even if toll tax is collected for 30 years, it may not be sufficient to even pay the interest on the principle amount to be invested on construction of the 330 km ring road.
Officials in the Roads and Buildings department said that the state government has been submitting replies and details to every query raised by the ministry.
“It’s a positive sign that the prestigious regional ring road project will be developed with central funding. The state government has agreed to share some of the cost of land acquisition,” an official said.