The investigation into the awarding of Hyderabad’s Outer Ring Road (ORR) maintenance contract to IRB Infrastructure has stalled. Allegations of irregularities in the tendering process have raised concerns, but the probe has seen little progress, leaving questions unanswered about potential favoritism and compliance with competitive bidding norms.
Revanth Reddy had said that by awarding the contract for ₹7,380 crore for a “pay-off” of ₹1,000 crore the then BRS regime had caused a loss of ₹30,000 crore revenue to government as toll collection per day on ORR was ₹2 crore.
The investigation into the alleged ₹1,000 crore “scam” in awarding the maintenance work of the 158-km long Nehru Outer Ring Road that encircles Hyderabad remains stuck in limbo.
The “scam was uncovered” in April 2023, when Telangana Chief Minister was the TPCC president
He had said that the then BRS government had offered the maintenance contract for 30 years to IRB Infrastructure Developers Limited, for ₹7,380 crore which he termed as a pittance.
As the then PCC president, he said he would review the contract and send the politicians and the officials up the river, who were involved in the scam, after coming to power.
He also warned the private company that it too would have to face the prospect of a review of the award given to it and how it was implementing it.
Revanth Reddy had said that by awarding the contract for ₹7,380 crore for a “pay-off” of ₹1,000 crore the then BRS regime had caused a loss of ₹30,000 crore revenue to the government as toll collection per day on ORR was ₹2 crore.
Revanth Reddy had said that the opportunities for the government to earn more money apart from toll fees were limitless, yet it gave away the contract for 30 years to IRB Infra.
CM sought details
As he had expected, Revanth Reddy rode to power but did not pay much attention to the “scam.”
In February, when the subject came up during a review of the ongoing works of the Hyderabad Metropolitan Development Authority (HMDA), he asked its joint commissioner Amrapali Kata to dig into the scam and furnish him with details. He had said that he would discuss the issue in the cabinet and take a decision on whether it should be referred to the CBI or any other agency.
At the review meeting, officials are said to have told Revanth Reddy that award of contract has been done in accordance with rules and the government doesn’t have enough grounds to rescind it. This perhaps explains why the project hasn’t been reviewed. Representatives of IRB Infra are also understood to have met higher ups in the government and explained their position.
A source in the government speaking with #Khabarlive noted that there has not been much progress since then.
“The government was keen on uncovering the scams that are suspected to have taken place in the execution of Kaleshwaram Lift Irrigation Scheme(KLIS), power purchase agreements with Chhattisgarh and the construction of Yadadri and Bhadradri thermal power stations. But the ORR scam remained a non-starter,” the source said.
Targetted at KTR
When Revanth Reddy made the allegations of corruption in the ORR maintenance contract, against the then BRS government, they became sensational as they were centred around KT Rama Rao (KTR), then Municipal Administration and Urban Development Department minister.
Revanth Reddy tried to meet the then-special chief secretary of MAUD department Arvind Kumar, but the police prevented him from entering the secretariat premises which generated a lot of heat.
Upon Revanth Reddy’s insistence that he only wanted to hand over a request for information on ORR under the Right to Information Act, the police, apparently under instructions from the BRS bosses, asked him to approach the commissioner of the Municipal Administration whose office is located at AC Guards in Hyderabad.
When he visited the office, no responsible officer was present, and he was forced to hand over the application for information to a clerk and take a receipt.
The then BRS government had rebutted Revanth Reddy’s charges. Arvind Kumar insisted that the process of awarding the work to the private agency was done most transparently.
He maintained that the tenders for the awarding of the work were called in accordance with the rules laid down by the National Highway Authority of India (NHAI). The agency that got the work would not be allowed to raise toll charges without obtaining permission from NHAI.
After ORR
After the laying of the ORR, traffic nightmares came down drastically for those who lived closer to the ORR and wanted to reach other places in the city.
For the heavy traffic bound destinations beyond Hyderabad, it obviated the need for it to negotiate through the madness that is called traffic in the capital city
The construction of the ORR began in 2006 when YS Rajasekhar Reddy was the chief minister of the undivided Andhra Pradesh and was completed in 2018.
The ORR is considered one of the most well-designed and strategically located ring roads in the entire country.
Different stretches of the ORR, as and when they were completed, were opened to toll collection — with the first stretch of 79.45 km opening in 2012. The entire ORR stretch of 158 km was opened for toll collection in 2018. #hydkhabar
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