The Telangana government has allocated ₹17,677 crore for urban development. This money will be used to improve infrastructure, promote sustainable growth, and strengthen municipal governance. Over the next three years, ₹4,500 crore will be spent on developing new municipalities and urban planning authorities to improve city infrastructure and living standards.
Rapid Urban Growth
On March 19, 2025, Deputy Chief Minister and Finance Minister Bhatti Vikramarka presented the budget for the 2025–26 financial year. He highlighted Telangana’s fast urbanization, mainly due to the growth of the IT sector, infrastructure projects, and government policies. The government plans to develop tier-two cities such as Warangal, Nizamabad, and Khammam to ensure balanced growth across the state.
– Warangal will become a major hub for education, healthcare, and IT industries.
– Nizamabad and Khammam will focus on agriculture-based industries and manufacturing.
Hyderabad’s Transformation with H-CITI
As Hyderabad continues to grow rapidly, the government has introduced the H-CITI initiative to improve urban infrastructure and reduce traffic congestion. The first phase of the plan includes:
– 31 flyovers, 17 underpasses, and 10 road-widening projects costing ₹7,032 crore.
– Beautification projects worth ₹150 crore to enhance the city’s appearance.
– A ₹5,942 crore Integrated Stormwater Drainage Project to manage floods and improve urban resilience.
Additionally, the SPEED (Smart, Proactive, Efficient, and Effective Delivery) initiative aims to speed up 19 key projects like the Musi Riverfront Development, Metro Rail expansion, and the Regional Ring Road. While the specific budget for these projects has not been announced, ₹1,150 crore has been set aside, with more funds to be allocated as needed.
India’s First Net-Zero Future City
The Telangana government has also announced plans to develop India’s first Net-Zero Future City. This city will cover 765 sq. km across 56 villages between the Srisailam and Nagarjuna Sagar highways and will be managed by the newly formed Future City Development Authority (FCDA).
The city will include:
– Multimodal transport with a sustainable electric public transport system.
– Green buildings and eco-friendly urban planning.
– Special zones like AI City, Pharma Hub, Sports City, and Clean Energy Innovation Zone.
While the budget for this project has not been announced, it is expected to attract global investments and make Telangana a leader in sustainable urban development.
