Hyderabad: The Telangana government on Saturday, March 7, sanctioned Rs 5257.20 crore for taking up Phase 1 of the Comprehensive Underground Drainage (UGD) scheme in Greater Warangal Municipal Corporation (GWMC).
According to GO 322, the project will be undertaken as per the Urban Challenge Fund announced in the 2025-26 Union Budget, where the Centre will provide 25 per cent of the funds and the state government or Urban Local Body will provide another 25 per cent.
The remaining 50 per cent of the fund is to be raised through bank loans or a public-private-partnership (PPP) model.
The project was first approved in 2024, with Rs 4,170 crore sanctioned by the Municipal Administration Department. However, after estimation, the project came up to Rs 5,257.20 crore.
Moreover, as a financial tie-up was not decided in the first sanction, there was no progress in the project. Then, to arrange the money, the Municipal Administration Department explored the Urban Challenge Fund and conducted meetings with international funding agencies such as the Asian Development Bank (ADB), European Union (EU), World Bank and KfW Development Bank.
Among these, KfW agreed to fund the project and asked the state government to upload the preliminary project report (PPR) in the Department of Economic Affairs.
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