The Osmania Hospital, under the Health, Medical and Family Welfare Department, received ₹2,700 crore for its 27-acre expansion project, aiming to significantly improve healthcare services in the region
Published Mar 19, 2025 | 10:20 PM ⚊ Updated Mar 19, 2025 | 10:20 PM
Push for infrastructure in the Telangana Budget
Synopsis: Telangana Deputy Chief Minister Bhatti Vikramarka presented the 2025-26 state budget, focusing on infrastructure development. Key sectors such as urban expansion, road connectivity, and irrigation received significant funding, including ₹17,677 crore for Hyderabad’s urban transformation. The budget outlines plans for future cities, metro rail expansion, rural roads, and large-scale irrigation projects to foster long-term economic growth
Telangana Deputy Chief Minister Bhatti Vikramarka presented the state budget for 2025-26 in the Assembly today,19 March, with a strong emphasis on infrastructure development across key sectors. The budget outlined significant investments in urban expansion, road connectivity, irrigation, and energy, reinforcing the government’s commitment to long-term growth.
The Municipal Administration and Urban Development (MA&UD) Department received one of the highest allocations at ₹17,677 crore, aimed at transforming Hyderabad’s urban landscape through projects like flyovers, road expansions, and stormwater drainage systems.
Similarly, the Roads and Buildings Department secured substantial funding to enhance state-wide connectivity, including the development of 17,000 km of rural roads by 2028 under the Hybrid Annuity Model (HAM). With ambitious plans such as the Future City, Metro Rail expansion, and large-scale irrigation projects, Bhatti reiterated the government’s vision of strengthening Telangana’s infrastructure while fostering economic growth and urban resilience.
The government is implementing the H CITI plant to address the increase in traffic congestion across Hyderabad. “As part of the first phase, we have initiated the construction of 31 flyovers, 17 underpasses and 10 road expansion projects with an estimated investment of ₹7,032 crores.,” he announced. “Additionally, beautification projects worth ₹150 crore are in progress,” he added.
To address potential floods during the monsoons, the government is spending ₹5,942 Crore to develop an Integrated Stormwater Drainage Project. It would “enhance flood management and prevent waterlogging, ensuring better urban resilience.”
However, the focus isn’t solely on Hyderabad. “To accelerate the growth and development of newly established municipalities and urban development authorities across the state, we have devised a ₹4,500 crore investment plan,” the Minister announced. He reported that it would be utilised to develop essential urban infrastructure in the municipalities.
Under the same Department, Bhatti then announced a long-time promise of the Congress, the Future City. “ Spanning 765 sq. km across 56 villages between the Srisailam and Nagarjuna Sagar highways, this transformative mega-urban project is meticulously planned to drive innovation and economic growth,” he stated.
He also noted that the government identified 19 key projects to streamline. These include:
The Municipal Administration and Urban Development Department received an allocation of ₹17,677 Crore for FY 2025-26.
“We have launched the Udaya Samudram Brahmana Velamala Lift Irrigation Project to provide water to drought-prone areas in Nalgonda and Yadadri Bhuvanagiri districts,” Bhatti announced.
“This project will lift 6.70 TMC of water from the Udaya Samudram Balancing Reservoir to the Brahmana Velamala Balancing Reservoir,” he explained. Elaborating that “Once completed, this project will irrigate one lakh acres across 94 villages and supply safe drinking water to 107 villages affected by fluoride contamination, significantly improving both agricultural productivity and public health.”
Additionally, as part of the S Jaipal Reddy Palamuru RangaReddy Lift Irrigation Scheme, the government is set to take up the KP Laxmi Devi Palli reservoir. “ The government has granted administrative approval for the revitalisation of the Bunadigani Canal under the Musi Project, with an allocated budget of ₹266.65 crore,” he stated.
“These funds will be utilised for the comprehensive restoration and modernisation of the Bunadigani Canal, along with the Pillayipally and Dharmareddypally Canals in Yadadri district, optimising water distribution, and boosting agricultural productivity, ensuring long-term benefits for farmers in the region,” he added.
“In this budget, we are proposing an allocation of ₹ 23,373 crore for the Irrigation & Command Area Development Department,” he announced.
“The Telangana government has adopted the Hybrid Annuity Model (HAM) to accelerate road infrastructure development. Under this model, 40 percent of the funding will be provided by the government, while 60 percent will come from private developers, ensuring efficient resource utilisation and faster execution,” Bhatti reported. As part of this initiative, the government aims to develop 17,000 kilometres of rural roads by 2028, with an estimated investment of ₹28,000 crores.
Furthermore, the state government has granted administrative approval for the construction of 769.35 kilometres of new roads, with an investment of ₹3,725.22 crore to strengthen connectivity and modernise transportation infrastructure. As part of this initiative, 55 kilometres of roads and 9 bridges have already been completed.
This is apart from the initiative to improve rural connectivity by ensuring that every Panchayat is connected with a BT road. Additionally, the government is also taking up road repair work statewide. “The government has granted administrative approval for the construction of modern court complexes in 12 district headquarters, with an allocated budget of ₹972 crore, ensuring better legal facilities and improved access to justice across the state,” he continued.
“Telangana has witnessed significant growth in electricity consumption, driven by rapid industrial, agricultural, and economic expansion,” Bhatti Vikramarka said. “Recognizing the critical need for sustainable energy, the Telangana government has introduced the “Clean & Green Energy Policy – 2025”, aiming to accelerate the shift toward renewable and eco-friendly power generation,” he continued.
He announced that the government is setting up a 250 MW/ 500 MHz Battery Energy Storage System in Shankarpally, Ranga Reddy, to strengthen the grid.
Additionally, he also stated that the government would strive to operationalise all five units of the Yadadri Thermal Power Plant by May this year.
Under the Health, Medical and Family Welfare Department, the Osmania Hospital took centre stage. With an allocation of ₹2,700 Crore, the 27-acre project is expected to enhance healthcare services.
Just recently, Bhatti announced the allocation of ₹11,600 Crore for the establishment of 58 Young India Integrated Residential Schools statewide. Coming up in all 33 districts, it was proposed as a world-class institution making education accessible to those in need. The Deputy Chief Minister reiterated that commitment adding that the schools would come up in about 20 to 25 acres each. He further stated that the government aims to establish at least one such school in each of the 119 constituencies.
Additionally, he also proposed an allocation of ₹550 Crore to the Chakali Ailamma Women’s University in Hyderabad’s Koti. These funds would be used to preserve the heritage building and develop newer infrastructure around it.
Bhatti Vikramarka also mentioned the INdira Mahila Shakthi Bhavans in his budget speech. The initiative, under which 22 buildings will come up at various district headquarters, will cost the government ₹110 Crore. It is expected to serve as a business centre for SHGs, enabling them to expand their businesses.
Additionally, in a novel announcement, he announced that the Society for Elimination of Rural Poverty (SERP), TGREDCO, TGSPDCL, and TGNPDCL have reached an agreement for a power project. SHGs will be responsible for the establishment and maintenance of solar power plants. “This project will not only generate 1,000 megawatts of solar power but also provide livelihood opportunities for women,” he stated.
Alongside initiatives like a savings fund and insurance for handloom weavers, Bhatti Vikramarka announced the establishment of two yarn depots in Telangana. Proposed in Rajanna Sircilla and Vemulawada, it will be set up with a ₹50 Crore corpus fund.
Additionally, Bhatii also reaffirmed the government’s aspiration to establish itself in the global pharmaceutical chain. “Greenfield Pharma Clusters in the Ranga Reddy and Mahbubnagar districts,” he announced.
Subsequently, he also announced the development of an AI city within the proposed Future City under the Information Technology (IT) Department. He informed that it would be spread across 200 acres. The IT Department received an allocation of ₹774 Crore for FY 2025-26.
In the 2025-26 Budget, Bhatti Vikramarka proposed ₹300 Crore to relocate the Veterinary Biological Research Institute in Shanti Nagar, Hyderabad, to Mamidipalli. The cost will also include its expansion on a ‘large scale.’
This is in addition to the proposal for a wholesale fish market in Ranga Reddy District. Proposed at Koheda, it will cost a₹47 Crore and be export-oriented. Additionally, the government is also establishing a new Frozen Semen Bull Station in Rangareddy District. Coming up in Kansapally, the government is investing ₹21.06 Crore. Bhatti reported that he expects the facility to be up and running soon, capable of producing about 10 Lakh frozen semen doses per year.
“As part of the new tourism policy, the Telangana government is developing 27 exclusive tourism zones across the state,” Bhatti announced. Additionally, the government also aims to improve infrastructure near “Rajiv Gandhi International Airport and the Regional Ring Road (RRR) to improve accessibility and tourism potential.”
The government is also investing in jetty construction, launch stations, water sports, houseboats, and river festivals along the Godavari and Krishna rivers. This is apart from the ₹242 Crore allocated to the development of Nallamalla as a major tourist destination.
“With an allocation of ₹110 crores, the construction of the ghat road and other infrastructure projects have already been initiated,” he announced, stating that the government intends to focus on developing the Kurumurthi Temple in Ammapur, Mahbubnagar district.
(Edited by Ananya Rao)