HYDERABAD: The Centre has approved Telangana’s proposal to secure Rs 5,000 crore in external assistance from German development bank KfW for urban infrastructure projects across the state.
The funding is part of the Telangana Climate Resilient Urban Transformation Initiative (Telangana-CRUTI), a Rs 7,143 crore programme covering sewerage, water supply, stormwater management and other urban infrastructure.
The Centre’s Screening Committee, under the Department of Economic Affairs in the Ministry of Finance, approved the proposal at its 167th meeting on Friday. The state government will contribute the remaining Rs 2,143 crore.
The largest component of the programme is the Greater Warangal Comprehensive Sewerage and Wastewater Management Transformation Project, for which Rs 5,257 crore has been proposed. It aims to expand sewer connections, upgrade wastewater treatment facilities and promote the reuse of treated wastewater across the Greater Warangal Municipal Corporation (GWMC) area.
The Telangana Urban Finance and Infrastructure Development Corporation (TUFIDC) will implement the programme, with the Ministry of Housing and Urban Affairs (MoHUA) serving as the nodal ministry.
MoHUA, NITI Aayog supported TG’s loan proposal
Municipal Administration and Urban Development Secretary TK Sreedevi presented the proposal to the committee, outlining its objectives, priority investments and implementation framework.
MoHUA and NITI Aayog supported the proposal, recommending that the state prioritise projects and link investments to urban governance reforms. MoHUA also stipulated that project-specific Detailed Project Reports be prepared and submitted for technical appraisal before the loan agreement is signed. The state government has accepted the suggestions.
Apart from sewerage and wastewater management in Warangal, the programme envisages investments in 24-hour water supply, stormwater management, rejuvenation of water bodies, integrated solid waste management, blue-green infrastructure and sustainable mobility in selected urban local bodies.
The projects are intended to help urban areas cope with floods, extreme heat and water stress. The programme will also focus on innovative financing, institutional strengthening and coordination with Central schemes such as AMRUT 2.0, Swachh Bharat Mission (Urban) 2.0 and the Urban Challenge Fund.