Centre Okays Rs 5,000-Crore German Loan for Telangana
The proposed programme has a total outlay of Rs 7,143 crore, comprising Rs 5,000 crore in external borrowing and a Rs 2,143-crore contribution from the Telangana government.
Hyderabad: The state government's Rs 7,143-crore urban transformation initiative has secured a preliminary clearance from the Union finance ministry, paving the way for the proposed German development financing to modernise sewerage systems, improve water infrastructure and strengthen climate resilience in smaller cities.
The centerpiece of the initiative is the Greater Warangal Comprehensive Sewerage and Wastewater Management Transformation Project, with an estimated investment of approximately Rs 5,257 crore. The Warangal project is designed to establish an extensive underground sewerage network, expand household sewer connections, upgrade wastewater treatment facilities and encourage the reuse of treated wastewater.
The screening committee of the Union finance ministry's department of economic affairs (DEA) on Friday approved Telangana's proposal to seek Rs 5,000 crore in external assistance from Germany's state-owned development bank Kreditanstalt für Wiederaufbau (KfW) under the Telangana Climate Resilient Urban Transformation Initiative (Telangana-CRUTI).
The proposed programme has a total outlay of Rs 7,143 crore, comprising Rs 5,000 crore in external borrowing and a Rs 2,143-crore contribution from the Telangana government. The state also plans to coordinate the investments with central government initiatives, including AMRUT 2.0, Swachh Bharat Mission (Urban) 2.0 and the Urban Challenge Fund.
Telangana-CRUTI is intended to support urban development across selected Tier-2 and Tier-3 cities, reducing infrastructure gaps and improving their ability to cope with climate-related challenges. The programme proposes investments in round-the-clock drinking water supply, stormwater drainage, restoration of lakes and other water bodies, integrated solid waste management, sustainable transportation and blue-green infrastructure.
According to officials, the proposal was presented to the DEA screening committee by Dr T.K. Sreedevi, secretary of municipal administration and received support from the Union urban affairs ministry and NITI Aayog. The urban affairs ministry recommended the programme subject to the preparation and submission of project-specific detailed project reports (DPRs) for technical appraisal before the external loan agreement is signed.
NITI Aayog recommended greater emphasis on municipal governance and reform-linked incentives. The Telangana government accepted those suggestions, according to the account of the committee proceedings.