₹4,000 Crore Urban Makeover for Telangana Cities Gets Centre’s Nod
- pradeep
- 1 day ago
- 2 min read
The Union government’s Department of Economic Affairs has approved Telangana’s ₹4,000 crore urban transformation programme, clearing the way for the state to seek major funding support from the World Bank.
Under the proposal, Telangana plans to obtain around ₹2,800 crore from the World Bank, while the remaining cost will be met through other funding sources.
Tier-2 and Tier-3 Cities in Focus
The Telangana Municipal Administration Department has identified selected urban areas in tier-2 and tier-3 cities for modernisation under the programme.
The initiative aims to improve essential urban infrastructure while also making cities more resilient, better connected and economically competitive.
What Will Be Improved?
The programme will focus on upgrading:
Water supply systems
Sewerage networks
Stormwater drainage
Urban mobility
Blue-green infrastructure
Climate resilience measures
Parks and public spaces
Municipal administration and financial management will also be revamped as part of the initiative.
₹2,800 Crore World Bank Financing Proposed
The total estimated cost of the programme is around USD 430 million, equivalent to approximately ₹4,000 crore.
Of this, proposed World Bank financing amounts to about USD 301 million, or roughly ₹2,800 crore.
Push for Stronger Urban Local Bodies
A major component of the next phase will be strengthening the finances of urban local bodies.
The programme aims to help municipalities become more financially sustainable, develop projects capable of attracting market funding and improve their ability to raise resources for infrastructure development.
Digital Governance to Expand
Telangana also plans to expand digital governance systems across participating cities.
The reforms are expected to improve municipal administration, service delivery, financial management and transparency.
Cities to Tap Central Urban Schemes
The programme will also help Telangana cities access initiatives such as the Urban Challenge Fund and the City Economic Region programme.
These schemes are designed to support large-scale urban redevelopment and encourage cities to pursue investment-led growth.
City Economic Regions Proposed
The initiative proposes developing City Economic Regions to connect urban centres more effectively with surrounding areas.
Better regional connectivity, area redevelopment and increased private investment are expected to support economic activity and generate new employment opportunities.
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