HYDERABAD: The state government has intensified efforts to mobilise funds for the Musi Riverfront Development Project. Recently, the state government sent proposals to the Department of Economic Affairs under the Ministry of Finance for its approval to tap the World Bank for a loan for the project.
The Preliminary Project Report (PPR), accessed by TNIE, proposes a loan of Rs 4,100 crore from the World Bank once cleared by the Centre.
Apart from this, the state government would spend Rs 1,763 crore while the remaining funds required would be mobilised from the private sector and state and Central sector schemes.
According to the PPR, the project will leverage private sector financing through Public-Private Partnerships (PPP) with companies in the tourism and hospitality and real estate sectors alongside CSR funding. Green bonds would be issued for environmentally sustainable components, while revenue generation includes naming rights, sponsorships and tourism activities. The project will also align with the state and centrally sponsored urban schemes and programmes along with domestic financial markets.
Proposed duration of Musi rejuvenation project is six years
The PPR says: “Real estate development initiatives such as land value capture and joint development projects, can leverage increased property values around the riverfront.”
As per the PPR, the proposed duration of the project is six years, starting December 2024 with the tentative deadline for completion being December 2030.
The PPR says that the project will employ smart technologies to monitor and boost climate resilience through nature-based solutions, including GIS and AI based tools that can be used for effective planning and development, to monitor water quality, traffic flow and environmental conditions.
Land pooling and acquisition
The PPR says that the state government would undertake land pooling and land acquisition for the project. It says that the land pooled would be used to rehabilitate displaced households, create a land bank for future development and maintain social cohesion.
“This land pooling strategy provides modern housing, supports livelihoods and ensures financial sustainability by enabling Musi Riverfront Development Corporation (MRDCL) to secure funding and attract investments. By returning improved land to original owners and using the rest for development, the project promotes economic growth and benefits local communities.”
The PPR says that the strategic land acquisition along the Musi River will facilitate key infrastructure for the riverfront project, such as flood mitigation bunds, and sewerage treatment to improve water quality and enhance urban mobility through new and improved corridors. It says: “It will also support the creation of public parks and recreational areas, improving the urban environment and quality of life. The acquisition process will prioritise minimising disruption, offering fair compensation and adhering to legal guidelines.”
Beneficiary engagement
Strongly supporting the private sector engagement, the PPR says: “The river rejuvenation project seeks to transform the entire urban area, requiring sustainable finances, expertise and effective service. Private companies can also bring valuable expertise in construction, engineering and environmental management and deliver critical services such as waste management, security and public transportation aiding the project.”
Stating that the beneficiary engagement is key to project’s success, the PPR said: “It involves active engagement of the local communities in preparedness, planning and monitoring through consultations and collaborations with public representatives, NGOs and resident groups”