The Ministry of Housing and Urban Affairs has granted in-principle approval for three major infrastructure projects in Telangana, covering 26 urban local bodies across the state. The projects, with a combined outlay of ₹5,681.04 crore, will receive ₹1,420.26 crore in central assistance through the Urban Challenge Fund. The approval was given by the first National Apex Committee meeting, with the official communication reaching the Municipal Administration and Urban Development department on Wednesday.
The largest project involves the construction of an underground sewerage network in Warangal with a total cost of ₹4,674.6 crore. The project will receive central assistance of ₹1,168.65 crore and a loan of ₹2,337.30 crore from the German development bank KfW. This extensive sewerage infrastructure aims to improve sanitation facilities and urban living conditions in the historic city.
The second project, valued at ₹840 crore, will be implemented in Karimnagar district. It encompasses multiple components including solid waste management systems, riverfront development, stormwater drainage networks, road and junction improvements, footpaths, and a skywalk. The Centre will contribute ₹210 crore toward this project, with 50% funding coming as a loan from HUDCO. The project includes development of 60 km of model roads and integrated waste management systems designed to prevent leachate leakage into the Manair river.
The third approved project focuses on establishing an AI-based Integrated Command and Control Centre in Khammam at a cost of ₹166.44 crore. This modern facility will provide digital governance support to municipal bodies in the Khammam-Warangal-Karimnagar cluster. The project will receive a financial grant of ₹41.61 crore from the central government and a loan of ₹83.22 crore from HUDCO.
Under the Urban Challenge Fund provisions, cities are encouraged to access market-linked financing for projects demonstrating economic impact, scalability, sustainability, and strong reform linkages. The funding mechanism requires the Centre to release 25% of the grant once states secure 50% of the required bank tie-up, while the remaining share will be contributed by state governments or urban local bodies. MA&UD Secretary T.K. Sreedevi, who also serves as Commissioner and Director of Municipal Administration, stated that Chief Minister A. Revanth Reddy is keen on developing the Warangal corridor.
The secretary revealed that the Chief Minister has cleared 23 additional municipal projects worth ₹14,000 crore under the UCF, covering drinking water supply, waste-to-energy, and other sectors, which are currently under appraisal. The NAC meeting held earlier this month approved 17 projects across the country with a total value of ₹14,867.88 crore, including central assistance of ₹3,717.48 crore. These projects span cities including Nashik and Pune in Maharashtra, Visakhapatnam and Mangalagiri in Andhra Pradesh, Sambalpur, Berhampur and Rourkela in Odisha, New Shillong Township in Meghalaya, and Bengaluru in Karnataka.
