Telangana Seeks Rs 5,000 Crore Additional Central Assistance for Capital Investment

Hyderabad, May 2026 : Telangana has sought an additional special financial assistance of Rs 5,000 crore from the Centre under the Scheme for Special Assistance to States for Capital Investment (SASCI), as the state government pushes ahead with major investments in education, healthcare, and infrastructure.

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka Mallu made the request during a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday.

According to an official release, the Deputy Chief Minister discussed a range of issues related to Telangana’s development priorities, including capital expenditure, educational infrastructure, and fiscal flexibility for large-scale welfare and human resource initiatives.

During the meeting, Vikramarka requested the Union government to sanction an additional Rs 5,000 crore under SASCI to support Telangana’s ongoing development programmes and infrastructure expansion.

He informed Sitharaman about the substantial investments being made by the state government in sectors such as education, healthcare, rural infrastructure, and human resource development. The Deputy Chief Minister highlighted that Telangana is undertaking several ambitious programmes aimed at improving social indicators and strengthening long-term economic growth.

A key focus of the discussions was the state government’s flagship Young India Integrated Residential Schools (YIIRS) initiative, which is estimated to cost around Rs 30,000 crore. Vikramarka sought exemption from Fiscal Responsibility and Budget Management (FRBM) limits for Externally Aided Projects (EAPs) approved by the Department of Economic Affairs (DEA), arguing that such projects are critical long-term investments in human capital.

The Deputy Chief Minister had earlier raised the issue with Sitharaman during a meeting held in September last year. At that time, a delegation led by him had submitted a representation seeking special financial support and FRBM relaxation for the ambitious residential school programme.

The state government has maintained that the YIIRS initiative is designed to transform access to quality education and nutritious food for lakhs of children, particularly those belonging to socially and economically disadvantaged communities.

During the latest meeting, Vikramarka reiterated that the programme would not only strengthen educational infrastructure but also contribute significantly to India’s demographic dividend by empowering future generations through improved learning opportunities and health outcomes.

The delegation had earlier explained that the residential schools programme was launched to address long-standing challenges in providing quality education and nutrition support to students from marginalised backgrounds.

The Telangana government also pointed out that a large section of the state’s population belongs to socially and educationally backward communities. According to SEEPEC data cited by the state, 56.33 per cent of the population belongs to Backward Classes, while Scheduled Castes account for 17.43 per cent and Scheduled Tribes constitute 10.45 per cent.

Agriculture Minister Tummala Nageswara Rao was also part of the earlier delegation that appealed to the Centre for FRBM exemption and enhanced financial support for the initiative.

State officials believe that additional central assistance and fiscal flexibility would help accelerate Telangana’s developmental programmes and strengthen investments in education and social infrastructure.