Telangana govt releases Rs 375 cr for Musi rejuvenation project

The ambitious Musi River Rejuvenation Project aims to transform a 55-km stretch of the river in Hyderabad into a modern economic hub.

Hyderabad: The Telangana government has released Rs 375 crore as the first instalment for the Musi rejuvenation project under the 2026–27 budget allocation, local reports stated.

The total allocation made for this fiscal year is Rs 1,500 crore. An order for releasing the funds was issued by the Special Chief Secretary to the Metropolitan Area and Urban Development Department, Jayesh Ranjan, on Wednesday, May 6.

Project plan

The ambitious Musi River Rejuvenation Project aims to transform a 55-km stretch of the river in Hyderabad into a modern economic hub, with plans for sewage treatment plants, six-lane roads, and dedicated “night economy” zones.

The entire Phase 1 of the Musi rejuvenation project will cost Rs 7,055 crore. The development of the two stretches of the project, from Himayath Sagar to Bapu Ghat in Langar Houz, and from Osman Sagar to Bapu Ghat, is estimated to cost Rs 1,684 crore and Rs 1,992 crore, respectively.

Though the project has been receiving an allocation of Rs 1,500 crore for the past three years in the state budget, funds have been sitting unutilized due to the absence of a Detailed Project Report (DPR).

Rs 11.25 crore was spent by the government in the 2024-25 fiscal year, while only Rs 6.21 crore was utilised in the 2025-26 fiscal year, local reports stated.

The DPR of Phase 1 was finally unveiled by Chief Minister Revanth Reddy on March 13 this year at Taj Krishna Hotel in Hyderabad before a consortium of global corporates, foreign diplomats, subject matter experts, environmentalists, civil society organisations, administrators and media.

At the event, CM Revanth said that around 10,000 people were found living on the Musi river bed and the buffer zones, who will be resettled to different locations.

He said that the state government had allotted 1,500 houses to the first batch of land evictees, but many of them urged that they didn’t want to relocate to faraway places.

Sub committee headed by Dy CM

The government has also constituted a sub-committee with Deputy Chief Minister Mallu Bhatti Vikramarka as its Chairman to review people’s suggestions on the project, as it has met intense protest from residents and activists who fear widespread displacement and ecological imbalance.

Bharat Rashtra Samithi (BRS) leader KT Rama Rao, Harish Rao and others have vocally opposed the project, alleging large-scale corruption.