Cabinet Approves ₹7,345 Crore Musi Rejuvenation Project Phase 1

Cabinet Approves ₹7,345 Crore Musi Rejuvenation Project Phase 1
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The Telangana government has received cabinet approval for the ambitious Musi River Rejuvenation and Riverfront Development Project, with Phase I estimated at ₹7,345 crore, excluding land acquisition costs. The state government is now set to invite tenders for the first phase within the next few days, marking a significant step towards transforming Hyderabad’s urban landscape and addressing long-standing environmental concerns along the river.

The first phase will cover a 21-kilometre V-shaped stretch of the Musi River, divided into two sections. The stretch from Himayat Sagar to Bapughat spans 9.2 kilometres, while the section from Osman Sagar to Bapughat extends 11.8 kilometres, reaching up to Gandhi Sarovar. The project has been designed based on recommendations from the National Institute of Hydrology to handle flood flows of up to 1.5 lakh cusecs during a 100-year flood event, ensuring robust infrastructure for future climate challenges.

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Download our AppCabinet Approves ₹7,345 Crore Musi Rejuvenation Project Phase 1

Funding for the project will come from multiple sources, with the Asian Development Bank (ADB) expected to provide a loan of ₹4,500 crore. The Telangana government will contribute the remaining ₹2,845 crore from state resources. This financial arrangement demonstrates the government’s commitment to infrastructure development while leveraging international support for the large-scale urban transformation initiative.

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Download our AppCabinet Approves ₹7,345 Crore Musi Rejuvenation Project Phase 1

The project aims to provide a permanent solution for residents living along the Musi catchment area, who have faced decades of sewage pollution and recurring flood-related insecurity. The rejuvenation initiative goes beyond aesthetic improvements, focusing on addressing core environmental and public health issues that have affected communities in the region. The development is expected to significantly improve the quality of life for thousands of residents in the GHMC limits.

As part of the comprehensive development plan, the project will strengthen both riverbanks by constructing and upgrading link roads on either side of the Musi River. This infrastructure enhancement will improve internal connectivity within Hyderabad’s core city, ease travel for commuters, and enhance transportation facilities for residents. The improved road network is expected to reduce traffic congestion and provide better access to various parts of the city.

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Download our AppCabinet Approves ₹7,345 Crore Musi Rejuvenation Project Phase 1

The larger Musi Rejuvenation Plan spans 55 kilometres and will be implemented in phases under the EPC (Engineering, Procurement, and Construction) model. INC Ponguleti described the initiative as a transformative step towards restoring the Musi and reimagining Hyderabad’s future, emphasizing cleaner riverbanks, better roads, improved connectivity, and lasting relief for communities along the Musi.

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