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Telangana pushes urban expansion with major investments in Hyderabad and emerging cities
The Telangana government has earmarked ₹17,677 crore for urban development, focusing on infrastructure expansion, sustainable growth, and enhanced municipal governance
The Telangana government has earmarked ₹17,677 crore for urban development, focusing on infrastructure expansion, sustainable growth, and enhanced municipal governance. A notable ₹4,500 crore will be invested over the next three years to support the development of newly established municipalities and urban planning authorities, aiming to modernise infrastructure and improve living standards.
Fast-paced urbanisation and expansion
Presenting the budget for the 2025–26 financial year on 19 March 2025, Deputy Chief Minister and Finance Minister Bhatti Vikramarka highlighted Telangana’s rapid urbanisation, primarily driven by IT sector growth, infrastructure projects, and strategic government initiatives. He emphasised the state’s commitment to advancing tier-two cities, including Warangal, Nizamabad, and Khammam, to ensure balanced development across regions.
- Warangal is being positioned as a major centre for education, healthcare, and IT industries.
- Nizamabad and Khammam are set to emerge as key players in agriculture-based industries and manufacturing.
Transforming Hyderabad with H-CITI
With Hyderabad experiencing unprecedented growth, the government is pushing forward with the ‘H-CITI’ initiative to strengthen urban infrastructure and address traffic congestion. The first phase of the plan includes:
- 31 flyovers, 17 underpasses, and 10 road-widening projects at an estimated cost of ₹7,032 crore.
- Beautification projects worth ₹150 crore to enhance the city’s aesthetics.
- A ₹5,942 crore Integrated Stormwater Drainage Project to improve flood management and urban resilience.
Additionally, the SPEED (Smart, Proactive, Efficient, and Effective Delivery) initiative aims to accelerate the completion of 19 critical projects, such as the Musi Riverfront Development, Metro Rail expansion, and the Regional Ring Road. However, specific budget allocations for these initiatives remain unspecified, with ₹1,150 crore set aside under various budgetary heads. Further funding may be allocated based on project requirements.
India’s First Net-Zero Future City
In an ambitious move, the government has unveiled plans for India’s first Net-Zero Future City, spanning 765 sq. km across 56 villages between the Srisailam and Nagarjuna Sagar highways. The Future City Development Authority (FCDA) has been formed to oversee its growth.
Features of the city include:
- Multimodal connectivity and a sustainable electric public transport network.
- Green buildings and eco-friendly urban planning.
- Specialised zones such as an AI City, Pharma Hub, Sports City, and Clean Energy Innovation Zone.
Although no specific budget allocation has been made for this initiative, it is expected to attract global investments and establish Telangana as a leader in sustainable urban development.
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