Telangana News Today: The Telangana government is seeking support from the central government’s Urban Challenge Fund to finance various urban development projects, including water supply, sanitation, and infrastructure enhancements.
HYDERABAD: The Telangana government has expressed interest in obtaining financial assistance from the central government’s Urban Challenge Fund (UCF) to implement several urban development initiatives. These projects focus on city redevelopment, growth corridors, water supply, sanitation, and sewage treatment.
The UCF is designed to provide funding for urban projects, with a specific allocation structure: 25% from the central government, 25% from the state government or urban local bodies, and the remaining 50% to be raised through bonds or bank loans. For Public-Private Partnership (PPP) projects, the respective agency is responsible for the 50% funding. The central government has emphasized that its contribution is contingent upon the state’s ability to secure its share and demonstrate financial commitment.
To access these funds, the central government has instructed the state’s Municipal Administration and Urban Development Department to submit detailed project reports. These reports should include project status, features, physical and financial progress, expenditure, concept plans, detailed project reports (DPRs), tender documents, work orders, and timelines for commencement and completion. Additionally, urban local bodies are encouraged to enhance their revenue streams through property taxes, user charges, advertisement fees, and the sale of reused water or energy.
In response, various departments within Telangana’s urban development sector have prepared proposals to secure UCF funding. The Greater Hyderabad Municipal Corporation (GHMC) has proposed a waste-to-energy project, while the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) has outlined a ₹17,212 crore sewerage master plan, including the establishment of Sewage Treatment Plants (STPs). The Hyderabad Metropolitan Development Authority (HMDA) has detailed plans for a cable bridge over Mir Alam Tank, two elevated corridors, and greenfield radial roads. Furthermore, the second phase of the metro rail project has been included in the UCF proposals.
The state government is actively engaging with the central government to secure the necessary funds for these projects. Chief Minister Revanth Reddy has met with Prime Minister Narendra Modi and other central ministers to advocate for Telangana’s inclusion in the UCF allocations.
