The floating value of the rupee is a boon for Telangana’s Musi project

A view of the confluence of the Musi and Esi rivers near Bapu Ghat at Langar Houz. File | Photo credit: Siddhant Thakur

The falling value of the rupee boosted project funding for the Musi Riverfront Development Corporation (MRDCL) to carry out river development works.

External financing from the Asian Development Bank has increased in volume due to the increased exchange value of the dollar over the years. While in real terms the multilateral agency sanctioned US$ 500 million, this converted to ₹ 4,100 crore a year ago when the loan was sought. With the rupee depreciating significantly since then, the actual funding has now reached ₹4,500 crore. The dollar exchange rate has jumped from ₹82 to around ₹95 in the interim.

The government on Thursday issued orders under an administrative sanction of ₹7,345.12 crore for Phase 1 of the Musi Riverfront Development project. This does not include the cost of land acquisition.

The entire cost of the project is to be financed through loans – a major portion of ₹4,500 crore from the Asian Development Bank and the remaining ₹2,845.12 crore from the Hyderabad Metropolitan Development Authority or the Telangana Industrial Infrastructure Corporation (TGIIC). The project will be carried out by the Musi Riverfront Development Corporation.

The areas in Zone-1 are to be taken up with funding, divided into two parts, 9.2 kilometers from Himayat Sagar to Gandhi Sarovar / BapuGhat (Zone-1A) costing ₹3232.01 crore and 11.8 kilometers from Osman Sagar to Gandhi Sarovar / BapuGhat) ₹1.

ADB approved the funding with the proviso that the remaining amount should be borne by the state government as a grant. The work will be initiated under Engineering-Procurement-Construction mode using a Project Management Consultancy (PMC) to implement, supervise and monitor the project in accordance with ADB’s procurement guidelines, the orders said.

Published – 10 Jul 2026 12:14 IST