Telangana Govt Sanctions ₹7,345 Crore for Musi Riverfront Project
ADB to fund ₹4,500 crore; works on 21-km priority stretch to be taken up in EPC mode
HYDERABAD: The Telangana government has cleared administrative sanction of Rs 7,345.12 crore, excluding land acquisition cost, for the first priority works under the Musi riverfront development project, which covers 21 km from Himayatsagar and Osmansagar to Gandhi Sarovar in Bapu Ghat.
The sanction was issued through the metropolitan area and urban development department (MAUD) on July 9 and the works will be taken up in Zone-1A and Zone-1B on EPC mode, with Rs 4,500 crore proposed through an Asian Development Bank loan and the remaining Rs 2,845.12 crore to be raised through HMDA/TGIIC.
The order said the government plans to “revive the entire Musi River ecosystem” through riverfront planning, city works, environmental improvement and sustainable mobility initiatives. The project is expected to cover nearly 200sq km across major urban areas of Hyderabad, and the government has decided to take it up in phases, beginning with Zone-1.
Zone-1A covers the 9.20 km stretch from Himayatsagar to Gandhi Sarovar. The estimated cost of works in this stretch is Rs 3,104 crore, apart from an operations and maintenance component of` 128.01 crore. The total cost for Zone-1A is Rs 3,232.01 crore.
Zone-1B covers 11.80 km from Osmansagar to Gandhi Sarovar which is estimated at Rs 3,950 crore, with 163.11 crore set aside for operations and maintenance. The total for Zone-1B comes to Rs 4,113.11 crore.
Taken together, the two stretches have a base estimate of Rs 7,054 crore and an operations and maintenance component of Rs 291.12 crore, which makes the total sanctioned amount to Rs 7,345.12 crore.
The order also records the earlier funding process. MRDCL had prepared a project proposal report and submitted it through the Centre for loan assistance. The department of economic affairs approved the project for posing to the Asian Development Bank and ADB later conveyed its willingness to support the financing.
The government has approved the appointment of a project management consultancy for execution, supervision and monitoring of the project. Procurement will follow ADB guidelines.
