Telangana Govt Sanctions ₹5,257.20 Crore Underground Drainage Project for Warangal

Earlier, the government had granted “in-principle approval” for ₹4,170 crore for the project in November 2024. However, after detailed estimations, the cost of the scheme was revised to ₹5,257.20 crore, according to the Commissioner and Director of Municipal Administration (C&DMA).

Officials said the project had initially seen little progress due to the absence of a clear financial tie-up. Subsequently, the Municipal Administration Department explored funding options under the Urban Challenge Fund (UCF) announced in the Union Budget 2025-26.

Under the funding model, 25 per cent of the project cost will be supported by the Government of India through the Urban Challenge Fund, while 50 per cent will be arranged through external assistance in the form of loans, and the remaining 25 per cent will be borne by the state government.

The German development bank KfW (Kreditanstalt für Wiederaufbau) has shown interest in providing external funding support for the project. Following a series of interactions and field visits, the KfW team held discussions with officials of the Municipal Administration Department and the C&DMA regarding the proposed underground drainage project.

The agency has given in-principle consent for funding support and has requested the state government to upload the Preliminary Project Report (PPR) on the Department of Economic Affairs portal to proceed further.

After examining the proposal, the Telangana government formally approved the administrative sanction of ₹5,257.20 crore for implementing the underground drainage works in Greater Warangal under Phase-I.

The order was issued with the concurrence of the Finance Department, and the Commissioner and Director of Municipal Administration has been directed to take necessary steps for implementation of the project.