The Telangana government has sanctioned a substantial ₹2,944 crore term loan from the Housing and Urban Development Corporation (HUDCO) to bolster Hyderabad’s drinking water infrastructure. The funding has been allocated to the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) to execute critical water supply projects across the city.
The approved loan will primarily finance Phase II and Phase III of the Godavari Drinking Water Supply Scheme, a vital project aimed at meeting the growing water demands of the expanding metropolitan area. Additionally, the funds will support efforts to fill the Osmansagar and Himayatsagar reservoirs, which form part of the broader initiative to rejuvenate the Musi river.
The project will be executed under the Hybrid Annuity Model, a public-private partnership framework that distributes financial responsibility between the government and implementing agencies. Under this arrangement, the Telangana government will contribute 40% of the project cost, while the remaining 60% will be invested by the concerned agency. The HMWSSB has been directed to mobilize its share through assistance from HUDCO.
This infrastructure investment addresses the critical need for reliable drinking water supply in Hyderabad, which has witnessed rapid urbanization and population growth in recent years. The project encompasses not just pipeline construction but a comprehensive approach to water security that includes reservoir management and river restoration efforts.
The Godavari Drinking Water Supply Scheme has been designed to provide a sustainable long-term water source for the city by tapping into the Godavari river. The phased implementation approach allows for systematic expansion of water supply infrastructure to reach all areas of the metropolitan region. The scheme is expected to significantly reduce water stress in areas that currently face supply challenges.
The simultaneous focus on filling Osmansagar and Himayatsagar represents an integrated water management strategy that combines immediate supply needs with ecological restoration goals. These twin reservoirs have historically served as important water sources for Hyderabad, and their replenishment aligns with the government’s commitment to reviving the Musi river ecosystem while ensuring water security for the city’s residents.
