Telangana Seeks Rs 40,000 Crore from Union Budget
The state government has urged the Centre to honour provisions of the Andhra Pradesh Reorganisation Act 2014 and ensure Telangana receives its rightful share of resources and incentives in the Union Budget.
Hyderabad: Ahead of the Union Budget 2026 on February 1, the government has submitted a wishlist to the Centre, seeking financial assistance of around Rs 40,000 crore for various projects including Hyderabad Metro Rail expansion, RRR, industrial, urban development and housing projects.
Official sources said following the instructions of Chief Minister A Revanth Reddy and Deputy Chief Minister Mallu Bhatti Vikramarka, Chief Secretary K. Ramakrishna Rao has written to the Union finance ministry, outlining Telangana’s expectations and urging the Centre to address long-pending commitments and new development programmes in the Union Budget.
The state has requested both direct budgetary support and improved routing of funds for Centrally-Sponsored Schemes (CSS) through the state’s consolidated fund to ensure timely implementation.
Key demands include speedy approvals and funding for major road and rail infrastructure projects, particularly the Regional Ring Road (RRR), with the state seeking simultaneous development of its northern and southern segments. Telangana has urged the Centre to execute the project to avoid delays. Funds for expansion of radial roads connecting districts to Hyderabad and Bharat Future City were also sought to decongest the capital and boost regional connectivity.
According to sources, urban infrastructure projects figure prominently in the proposals, with the state government seeking Central support for Phase-2 expansion of the Hyderabad Metro Rail on a 50:50 cost-sharing basis.
The proposed corridors, spanning over 76 km, are aimed at improving urban mobility in the city. Funding has also been sought for the Musi River rejuvenation project, including the Gandhi Sarovar project, sewerage infrastructure and heritage bridge restoration, for which defence land in the city is proposed to be exchanged with land at Raviryal.
The state has reiterated demands linked to state bifurcation assurances, including establishment of a steel plant at Bayyaram and a railway coach factory at Kazipet. It has also sought inclusion in the India Semiconductor Mission to attract high-tech manufacturing investments and strengthen the defence and electronics ecosystem.
Housing and education are other priority areas. Telangana has requested approval for construction of 25 lakh houses under the Pradhan Mantri Awas Yojana and sought the setting up of an Indian Institute of Management (IIM) on the University of Hyderabad campus. Release of Rs 1,800 crore pending under the Backward Regions Grant Fund since 2019 was also sought.
The state government has appealed for Central assistance to clear pending irrigation and water-related projects, access low-interest NABARD funding or grants, and support new residential schools under national education schemes.
The state government has urged the Centre to honour provisions of the Andhra Pradesh Reorganisation Act 2014 and ensure Telangana receives its rightful share of resources and incentives in the Union Budget.
