Telangana Allocates Rs 1,500 Crore for Musi Riverfront Project, Unveils Ambitious Urban Growth Plans

Hyderabad, March 2026 : The Government of Telangana has earmarked Rs 1,500 crore in the 2026-27 budget for the ambitious Musi Riverfront Development project, a flagship initiative of Chief Minister A. Revanth Reddy aimed at transforming the historic river into a vibrant urban and ecological corridor.

Presenting the budget in the State Assembly, Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka announced a comprehensive plan to rejuvenate the Musi River across a 55-kilometre stretch. The project is envisioned to combine environmental restoration with modern urban infrastructure, positioning the river as a key public and recreational asset.

In its first phase, the development will cover the stretch from Osman Sagar and Himayat Sagar to Gandhi Sarovar. As part of the rejuvenation efforts, the government plans to divert 2.5 TMC of water from the Godavari River to ensure sustained flow in the Musi.

A major highlight of the project is the development of the Gandhi Sarovar at the confluence of the Esa and Musi rivers. The initiative will include river cleaning, flood management systems, landscaped riverfronts, and creation of public recreational spaces designed to enhance urban livability.

Addressing concerns over displacement, the finance minister assured that families residing in the Musi river buffer zone would be rehabilitated with a humane approach, ensuring minimal hardship and equitable resettlement.

Beyond the riverfront project, the government has sanctioned large-scale infrastructure works worth Rs 43,592.88 crore for the development of Hyderabad and surrounding regions. Of these, projects valued at Rs 24,752 crore have already commenced, while the remaining works are expected to be taken up shortly.

Under the Hyderabad City Innovative and Transformative Infrastructure (H-CITI) scheme, an allocation of Rs 2,654 crore has been made to upgrade urban infrastructure. Additionally, Rs 600 crore has been earmarked for the second phase of the Hyderabad Metro Rail, which currently serves around five lakh passengers ежедневно.

The government has also outlined plans to expand the metro network to underserved areas, including the Old City, Shamshabad Airport, and regions beyond Hitec City. Vikramarka described the decision to take over the metro project from Larsen & Toubro as a bold, people-centric move that would strengthen public transport in the rapidly growing metropolis.

The budget further introduces a strategic development framework based on three pillars — CURE (Core Urban Region Economy), PURE (Planned Urban Region Economy), and RARE (Rural and Agricultural Region Economy). Within the Outer Ring Road Hyderabad, the government aims to develop a high-value services hub focusing on technology, artificial intelligence, global capability centres, research, and financial services.

The region between the Outer Ring Road and the proposed Regional Ring Road Hyderabad will be transformed into a manufacturing hub, with plans to establish MSME clusters, logistics parks, and industrial zones. This is expected to significantly boost employment and industrial growth in the state.

Areas beyond the Regional Ring Road will be developed under an agriculture-led growth model, with emphasis on food processing, value-added agriculture, and eco-tourism initiatives.

In a forward-looking move, the state also announced plans to develop “Bharat Future City” across 30,000 acres. The proposed smart city will feature radial road connectivity, a greenfield national highway linking it directly to Machilipatnam Port in Andhra Pradesh, underground power infrastructure, and eco-friendly smart grids.

The Telangana government’s multi-pronged approach reflects its vision of sustainable and inclusive growth, combining urban transformation with economic expansion and environmental conservation.