Chief Minister A. Revanth Reddy's pet projects — Future City, Musi rejuvenation, and Metro Rail Phase-2 — are set to receive significant financial backing in the upcoming state budget for 2025-26, official sources said
Hyderabad: Chief Minister A. Revanth Reddy's pet projects — Future City, Musi rejuvenation, and Metro Rail Phase-2 — are set to receive significant financial backing in the upcoming state budget for 2025-26, official sources said.
Officials from the municipal administration and urban development (MA&UD) department have finalised budget proposals pertaining to the high-priority projects and sent them to the Chief Minister for approval. Incidentally, Reddy himself holds the MA&UD portfolio.
The proposals were forwarded to Deputy Chief Minister Mallu Bhatti Vikramarka, who handles the finance portfolio. As per the preliminary project report (PPR) prepared by the MA&UD department, the state government plans to borrow Rs 4,100 crore from the World Bank for the Musi rejuvenation project. The state will contribute Rs 1,763 crore, with the remaining funds to be raised from private sector investments and Central schemes. The government has set an ambitious target of completing the Musi project by December 2030.
Substantial allocations are expected for the Musi project in the upcoming Budget, with the state government set to allot its share of funds.
In line with his focus on development of Hyderabad, the Chief Minister has directed officials to prepare detailed project reports (DPR) for the Shamirpet, Medchal, and Future City Metro Rail corridors by the end of March. These DPRs will be submitted to the Centre for approval.
The second phase of the Metro Rail project is estimated to cost ₹24,269 crore. The state government has committed to bear 30 per cent of the cost, amounting to ₹7,313 crore. The Centre's contribution is expected to be ₹4,230 crore, or 18 per cent of the total cost. The remaining ₹11,693 crore (48 per cent) will be funded through loans from institutions such as JICA, ADB, and NDB, with an additional ₹1,000 crore (four per cent) expected from public-private partnerships (PPP).
The Budget is likely to allocate a significant portion of the state's Rs 7,313 crore share for the metro project.
The future city project would be developed a sprawling urban space on the outskirts of the city, covering 814.68 square km (2,01,318 acres). Plans are underway to establish a dedicated Urban Development Authority (UDA) to oversee the project's execution. The Future City will span seven mandals and 56 revenue villages. The government intends to allocate an initial amount of Rs 10,000 crore for land acquisition for the project.
