Hyderabad may soon witness a major infrastructure development with the proposal of India’s longest road tunnel. The project aims to improve traffic movement across some of the city’s busiest areas while preserving green spaces and reducing surface congestion.
According to the proposed plan, the tunnel road is expected to connect Biodiversity Park near Raidurg to the Ministers’ Quarters area, passing through important locations such as Durgam Cheruvu Cable Bridge, Sri Peddamma Thalli Temple, KBR Park, Panjagutta (NFCL Junction), Banjara Hills Police Station, and BNR Colony.
One of the key highlights of the project is that a large portion of the route will run underground near KBR Park, helping protect the surrounding environment while enabling smoother traffic flow. The tunnel is designed to reduce travel time between the western IT corridor and central Hyderabad, which currently experiences heavy traffic congestion.
If implemented, the project is expected to significantly ease traffic in major areas like Banjara Hills, Jubilee Hills, and Panjagutta, while also providing a faster and more efficient route for commuters traveling across the city.
Infrastructure experts believe that such underground road systems could play an important role in future urban mobility planning, especially in rapidly growing metropolitan cities like Hyderabad.
Telangana Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Finance portfolio, presented the state’s annual budget for 2025-26 in the Assembly today. The budget has a total outlay of Rs 3,04,965 crore, with Rs 2,26,982 crore allocated for revenue expenditure and Rs 36,504 crore for capital expenditure.
Key Announcements:
One of the major highlights of the budget is the introduction of the Mega Master Plan 2050 for industrial development. As part of this initiative, greenfield industrial clusters will be established in Ranga Reddy and Mahbubnagar districts. To alleviate urban congestion, the government has allocated Rs 7,032 crore for the construction of 31 flyovers and 17 underpasses under the HICITI (Hyderabad Integrated Connectivity and Infrastructure Transformation Initiative) project.
Sector-Wise Allocations:
The budget makes significant allocations across various sectors:
Education: Rs 23,108 crore
Agriculture: Rs 24,439 crore
Panchayati Raj and Rural Development: Rs 31,605 crore
Health, Medical & Family Welfare: Rs 12,393 crore
Energy: Rs 21,221 crore
Welfare of Scheduled Castes (SCs): Rs 40,232 crore
Welfare of Scheduled Tribes (STs): Rs 17,169 crore
Economic Outlook:
On the economic front, Telangana’s Gross State Domestic Product (GSDP) at current prices has registered a growth of 10.1%, reaching Rs 16,12,579 crore in 2024-25. The budget reflects the state government’s commitment to industrial expansion, urban and rural infrastructure development, and comprehensive social welfare programs, aiming for holistic economic progress.
Officials have faced a challenging balancing act—ensuring adequate funding for immediate commitments while securing resources for major welfare initiatives. The budget aims to propel Telangana towards sustained economic growth and inclusive development.
The Telangana government has unveiled a budget of Rs 17,677 crore for urban development in the fiscal year 2025-26, focusing on infrastructure enhancement, traffic management, and sustainable development. The announcement was made by Deputy Chief Minister Bhatti Vikramarka during the Assembly session on March 19.
Major Allocations for Urban Development
The budget includes key investments across multiple sectors:
Rs 7,032 crore for flyovers, road expansions, and underpasses in Hyderabad.
Rs 5,942 crore for an Integrated Stormwater Drainage Project to address urban flooding.
Rs 150 crore allocated for beautification efforts across the city.
The Telangana government is actively working on the H-CITI initiative, aimed at improving urban infrastructure and alleviating traffic congestion. Under this plan, the city will see the construction of 31 new flyovers, 17 underpasses, and 10 road expansion projects with an investment of Rs 7,032 crore.
Integrated Stormwater Drainage Project
In a move to combat urban flooding, the government has sanctioned Rs 5,942 crore for an integrated stormwater drainage system. This initiative includes the development of sewage treatment plants at Osman Sagar and Himayat Sagar reservoirs, with a combined capacity of 20 million litres per day (MLD). Additionally, these reservoirs will be replenished using Godavari waters as part of the Musi Riverfront Development Project.
Future City Project: India’s First Net-Zero City
A landmark announcement in the budget is the Future City Project, which will be developed under the newly established Future City Development Authority (FCDA). This visionary project aims to create India’s first net-zero city, integrating sustainable urban planning and multimodal connectivity.
Deputy CM Bhatti Vikramarka highlighted that the Future City will feature an electric public transport network, green buildings, and specialized zones such as:
AI City
Pharma Hub
Sports City
Clean Energy Innovation Zone
This project is expected to position Hyderabad as a global center for technology and sustainable development.
SPEED Initiative to Fast-Track Urban Development
The government has also launched the SPEED initiative to accelerate 19 key urban development projects, including:
Musi Riverfront Development
Metro Rail Expansion
Construction of new public infrastructure, including Osmania General Hospital
Breakdown of Budget Allocations
The Telangana government has structured its urban development budget as follows:
Establishment expenditure: Rs 7,639.96 crore
Water supply and sanitation: Rs 3,085 crore
Urban development: Rs 1,200 crore
Scheme expenditure: Rs 10,037 crore
Capital outlay for municipal administration and urban development: Rs 5,213.67 crore
Assistance to local bodies, corporations, and urban development authorities: Rs 4,701.92 crore
With these ambitious plans, the Telangana government is set to transform Hyderabad into a modern, sustainable, and globally competitive city in the coming years.
