Telangana: Musi Project Gets ₹1,500 Crore, Urban Spend Gets Big Lift

Hyderabad: The Telangana Budget has allocated ₹1,500 crore for Chief Minister A. Revanth Reddy’s flagship Musi Riverfront Development project, which aims to revive the river.

The works related to the rejuvenation of the river will be taken up by Musi River Front Development Corporation Limited (MRDCL). Half of the project funding will come from the Asian Development Bank (ADB), while the state government and the central government will bear 25 per cent of the project expense each. The current allocation of ₹1,500 crore made in the Budget 2026-27 is part of the state government’s 25 per cent share.

The Budget allocated ₹17,907 crore to the Municipal Administration and Urban Development (MA&UD) Department, compared to ₹17,677 crore in 2025–26 and `15,533.21 crore in 2024-25, indicating an increased focus on urban infrastructure and civic services.

As part of urban development head, ₹2,654 crore has been earmarked under the Hyderabad City Innovative and Transformative Infrastructure (H-CITI) programme for infrastructure upgrades. Works include construction of flyovers, underpasses, road overbridges and road underbridges in the Core Urban Region Economy (CURE) area.

The government is also undertaking the Godavari Drinking Water Project, the construction of new reservoirs and 39 sewage treatment plants to improve the drinking water supply and sanitation in the CURE area. These works will be executed by the Hyderabad Metropolitan Water Supply and Sewerage Board.

The Budget also reduced the interest rate on loans of the Greater Hyderabad Municipal Corporation from 9.15 per cent to 7.95 per cent.

The government said it aims to develop Hyderabad on par with global cities while ensuring growth in other towns across the State. It has sanctioned works worth ₹43,592.88 crore for the development of Hyderabad and surrounding areas, of which projects worth ₹24,752 crore have commenced, with the remaining to be taken up.

The government also plans a legal amendment to establish a coordinating institution for agencies, including GHMC, Cyberabad Municipal Corporation, Malkajgiri Municipal Corporation, Hyderabad Disaster Response and Asset Protection Agency, and the Hyderabad Metropolitan Water Supply and Sewerage Board.

H-CITI: ₹2,654 crore

Musi project: ₹1,500 crore.

Sunkishala Intake Project: ₹1,000 crore

Water works: ₹1,450 crore

HMDA: ₹500 crore

RRR project: ₹1,525 crore

Hyderabad Metro Rail Phase II: ₹1,100 crore

Mission Bhagiratha (Urban): ₹500 crore

Municipal works: ₹651 crore