The Government of Telangana has sanctioned ₹5,257.20 crore for implementing a Comprehensive Underground Drainage (UGD) Scheme in the Greater Warangal Municipal Corporation (GWMC). The project aims to significantly strengthen sanitation infrastructure and improve wastewater management in the rapidly expanding city.
The approval was issued through G.O. Rt. No. 322 dated March 7, 2026 by the Municipal Administration and Urban Development Department. The sanctioned project will be taken up as Phase-I of the Underground Drainage Scheme in Warangal.
Funding Structure Finalized
According to the government order, the project will be implemented with a structured financial model involving multiple funding sources. The approved funding pattern is as follows:
- 50% External Assistance (Loan)
- 25% Government of India support under the Urban Challenge Fund
- 25% State Government share
Officials said the funding approach was finalized after exploring financial support opportunities under the Urban Challenge Fund announced in the Union Budget 2025–26, along with potential external development assistance.
Initial Approval and Revised Project Cost
Earlier, the Telangana government had granted in-principle approval for ₹4,170 crore for the underground drainage system in Warangal. However, after preparation of the Detailed Project Report (DPR) and revised technical estimates, the project cost was reassessed and increased to ₹5,257.20 crore.
The Commissioner and Director of Municipal Administration (C&DMA) informed the government that additional financial tie-ups were required to move forward with the scheme, prompting the exploration of funding through central government programs and external development agencies.
International Financial Support Explored
The government order also notes that the German Development Bank (KfW) has expressed interest in supporting the project. Representatives from the institution conducted discussions and field visits in Warangal and reviewed the project proposal.
Following these interactions, KfW indicated in-principle support for providing external financial assistance. The state government has been requested to upload the Preliminary Project Report (PPR) on the Department of Economic Affairs portal to facilitate further processing of the external funding.
Major Infrastructure Boost for Warangal
The underground drainage project is expected to bring a major improvement in urban sanitation, wastewater treatment, and environmental management across the city. Warangal, one of Telangana’s fastest-growing urban centres, has been facing increasing pressure on its existing drainage infrastructure due to rapid population growth and urban expansion.
With the new project, authorities aim to create a modern and comprehensive underground drainage network to support the city’s long-term development and improve public health standards.
The government order also stated that the Commissioner and Director of Municipal Administration will initiate further administrative and technical steps to implement the project as per the approved funding structure.
The sanction was issued with the concurrence of the Finance Department (DCM) and formally approved in the name of the Governor of Telangana.
