Telangana will get ₹ 1,420 cr. central assistance for projects in Warangal, Karimnagar and Khammam

The first National Apex Committee (NAC) of the Ministry of Housing and Urban Affairs (MoHUA) for the Urban Challenge Fund (UCF) has approved in principle three projects across 26 urban local bodies in Telangana with a total outlay of ₹ 5,681.04 crore and central allocation of ₹ 1,420.26 crore.

According to an official communication received by the Municipal Administration and Urban Development Department (MA&UD) on Wednesday, the ₹ 4,674.6 crore underground sewerage project in Warangal has been cleared, including central assistance of ₹ 1,168.65 crore and a loan of ₹ 2,337.30 crore from German development bank KfW.

The second major project with a total expenditure of ₹ 840 crore will be implemented in Karimnagar. It includes solid waste management, embankment development, storm water drains, improvement of roads and intersections, footpaths and skywalk with a contribution of ₹210 crore from the Center and a 50% loan from HUDCO. The third project involves setting up an AI-based Integrated Command and Control Center (ICCC) at Khammam at a cost of ₹166.44 crore. The center will provide digital governance support to municipal bodies in the Khammam–Warangal–Karimnagar cluster with a financial grant of ₹ 41.61 crore and a loan of ₹ 83.22 crore from HUDCO.

Under the provisions of the UCF MoHUA, cities are encouraged to access market financing for projects with demonstrable economic impact, scalability, sustainability and strong reform linkages. The Center will release 25% of the grant once states provide 50% of the required bank linkage, while the remaining share will be contributed by states or local bodies in cities.

MA&UD Secretary TK Sreedevi, also Commissioner and Director of Municipal Administration, said that Chief Minister A. Revanth Reddy is interested in the development of the Warangal Corridor. Apart from the sewer network in Warangal, 60 km of model roads will be constructed in Karimnagar along with integrated waste management systems to prevent seepage of seepage into the Manair River.

Mr Reddy has also sanctioned 23 other municipal projects worth ₹14,000 crore, covering drinking water supply, waste to energy and other sectors, under the UCF and these are currently under evaluation, she added. Overall, the NAC meeting held earlier this month approved 17 projects across the country worth ₹14,867.88 crore, including central assistance of ₹3,717.48 crore. These include cities like Nashik and Pune in Maharashtra, Visakhapatnam and Mangalagiri in Andhra Pradesh, Sambalpur, Berhampur and Rourkela in Odisha, New Shillong Township in Meghalaya and Bengaluru in Karnataka.

Published – 20 May 2026 21:44 IST