Telangana govt. devises Rs.4,500 cr investment plan for new municipalities
State govt. proposes Rs.17,677 cr for MA&UD

Hyderabad: To accelerate the growth and development of newly established municipalities and urban development authorities across Telangana, the State government has devised a Rs.4,500 crore investment plan, according to Deputy Chief Minister Mallu Bhatti Vikramarka.
He said this while presenting budget in the State Assembly here on Wednesday. He said that Municipal Administration and Urban Development Department (MA&UD) was witnessing the fastest urbanization in the country, driven by the rapid expansion of IT industries, infrastructure development, and transformative government initiatives. In addition to Hyderabad, we are actively developing tier-two cities such as Warangal, Nizamabad, and Khammam.
Warangal is being established as a hub for education, healthcare, and IT, while Nizamabad and Khammam are being transformed into key centers for agriculture-based industries and manufacturing.
With Hyderabad experiencing rapid growth, we are implementing the H-CITI plan to strengthen urban infrastructure and efficiently manage increasing traffic congestion. “As part of the first phase, we have initiated the construction of 31 flyovers, 17 under passes and 10 road expansion projects with an estimated investment of Rs.7,032 crore. Additionally, beautification projects worth Rs.150 crore are in progress,” he explained.
In 2024, the Hyderabad Metropolitan Water Supply and Sewerage Board has undertaken several pioneering projects to enhance water infrastructure and environmental sustainability. “We have commenced the construction of four sewage treatment plants (STPs) with a total capacity of 20 MLD at Osman Sagar and Himayat Sagar reservoirs, ensuring efficient wastewater treatment and improved water quality,” he said.
Additionally, under the Musi Riverfront Development Project, the State government is revitalizing the Osman Sagar and Himayat Sagar reservoirs by replenishing them with Godavari water through the Godavari Drinking Water Supply Scheme. This initiative aims to restore the ecological balance of these reservoirs while securing a sustainable water supply for the future, Bhatti Vikramarka said.
For the first time in decades, the water board has launched an extensive desilting and cleaning initiative to restore neglected manholes and sewer lines. As part of this effort, 3,025 kilometers of sewer lines have been cleaned, and 2.39 lakh manholes have been desilted. This large-scale operation has led to a more than 25 per cent reduction in sewerage-related complaints, significantly improving urban sanitation, drainage efficiency, and public health.
The ORR Phase-2 Water Supply Project is now in its final stage, ensuring drinking water supply to urban areas within the Hyderabad Metropolitan Development Authority (HMDA) limits. To mitigate urban flooding, the government is implementing a comprehensive drainage system.
In Hyderabad, a Rs.5,942 crore Integrated Stormwater Drainage Project has been approved to enhance flood management and prevent waterlogging, ensuring better urban resilience. To accelerate the growth and development of newly established municipalities and urban development authorities across the state, the government devised a Rs.4,500 crore investment plan.
This funding will be systematically utilized over the next three years to enhance essential urban infrastructure, ensuring well-planned, sustainable, and modernized urban development.
Referring to Future City, the State government is pioneering the development of India’s first Net-Zero Future City, setting a new standard in sustainable and smart urbanization. Designed to rival the world’s top cities, this eco-friendly, ultra-modern metropolis will feature state-of-the-art infrastructure, cutting-edge technology, and a pollution-free environment.
Spanning 765 sq. km across 56 villages between the Srisailam and Nagarjuna Sagar highways, this transformative mega-urban project is meticulously planned to drive innovation and economic growth. To ensure its seamless execution, the Future City Development Authority (FCDA) has been established.
This next generation city will be equipped with multimodal connectivity, an electric public transport network, and green buildings, fostering a sustainable and smart living ecosystem. Additionally, it will house specialized zones such as an AI City, Pharma Hub, Sports City, and Clean Energy Innovation Zone, making it a global hub for technology, industry, and sustainable development.
The state government has launched SPEED (Smart, Proactive, Efficient, and Effective Delivery) to fast-track the completion of 19 key projects within the stipulated timeframe. This initiative focuses on real-time monitoring, proactive execution, and efficient resource management to ensure timely delivery and maximize public benefit. Some of the major projects under SPEED include Musi Riverfront Development, Metro Rail Expansion, Regional Ring Road Construction, Telangana Bhavan construction in Delhi, the New Osmania Hospital Building, and the Implementation of Anti-Narcotics Strategies.
In this budget, the State government is proposing an allocation of Rs.17,677 crore for MA&UD, he added.

