Musi River Development Project: Telangana Releases First Installment of Rs 375 Crore for Mega River Revival Plan

The Telangana government has released the first installment of Rs 375 crore for the ambitious Musi Riverfront Development project after a long delay. The amount, sanctioned by Special Chief Secretary Jayesh Ranjan, marks the beginning of work on the flagship project of Chief Minister A Revanth Reddy aimed at transforming the polluted Musi River into a world-class urban corridor stretching 55 km from Gandipet to Gowrelly.

Officials said the Rs 375 crore release is part of the budgetary commitment for 2026–27 and represents the first-quarter allocation of the total Rs 1,500 crore project commitment.

Telangana Government Releases Rs 375 Crore for Musi Riverfront Development

The Musi Riverfront Development project is one of the flagship initiatives of Chief Minister A Revanth Reddy.

The mega urban redevelopment project aims to rejuvenate the polluted Musi River and create a modern urban corridor extending 55 km between Gandipet and Gowrelly.

Officials said work on the project is expected to begin following the release of the first installment.

Two Years of Delay and Low Fund Utilization

The release of funds comes after nearly two years of slow progress in the project.

Despite budget allocations of Rs 1,500 crore each during 2024–25 and 2025–26, only a small amount was utilized:

• 2024–25: Only Rs 11.25 crore utilized
• 2025–26: Only Rs 6.21 crore utilized

Officials attributed the delay to the extensive preparation process for the Detailed Project Report (DPR) and the master plan.

The DPR for the first phase was finalized and unveiled in March 2026. The government has now entered the execution and land acquisition phase.

ADB Loan and State Funding for Musi River Project

Phase-1 of the project is estimated to cost around Rs 5,812 crore, excluding land acquisition expenses.

The project will be financed through a combination of state funding and external loans.

Funding Details

• ADB Loan: The Asian Development Bank (ADB) has reportedly granted preliminary approval for a Rs 4,100 crore loan, equivalent to USD 500 million.
• State Share: The remaining amount will be funded by the Telangana government and potentially the Central government.

Land Acquisition and 50-Metre Buffer Zone

The Telangana government has intensified land acquisition efforts to clear the river’s Maximum Flood Level (MFL) and create a 50-metre buffer zone.

Authorities have issued notices for two important stretches:

• 9.2 km stretch: Between Himayat Sagar and Gandhi Sarovar
• 11.8 km stretch: Between Osmansagar and Gandhi Sarovar

Key areas under acquisition include:

• Kismatpur
• Bandlaguda Jagir
• Gandipet

Officials confirmed that notifications for around 50 acres have already been issued.

Property owners are being encouraged to voluntarily surrender land in exchange for Transferable Development Rights (TDR) or market-value compensation.

Opposition and Resistance Over Musi Riverfront Development

The project has also triggered resistance from several residents opposing land acquisition.

A section of professionals, including doctors, reportedly approached the government seeking proper benefits, stating that they invested their life savings into building homes in the affected areas.

The Opposition Bharat Rashtra Samithi (BRS) has supported those protesting against the project, alleging that the redevelopment plan will affect the livelihood of families living there for many years.

Gandhi Sarovar and East-West Corridor Plan

A major highlight of Phase-1 is the proposed Gandhi Sarovar project, a 200-acre development planned at the confluence of the Musi and Easa rivers.

The project will include:

• A 153-foot statue of Mahatma Gandhi atop a 100-metre tower
• Museums
• Handloom centers
• Recreational promenade

The plan also includes an East-West Corridor featuring both at-grade and elevated roads aimed at reducing travel time between Gandipet and Gowrelly by half.

Godavari Linkage and 39 New STPs Planned

Officials said the Musi rejuvenation plan also includes a Godavari linkage project to ensure year-round ecological flow of clean water into the river.

Additionally, the government plans to construct 39 new Sewage Treatment Plants (STPs) to stop untreated waste from entering the Musi River.

The Telangana government’s release of the first installment of Rs 375 crore marks a major step forward for the Musi Riverfront Development project after years of delays. The flagship initiative of Chief Minister A Revanth Reddy aims to transform the 55-km polluted Musi River stretch from Gandipet to Gowrelly into a world-class urban corridor. While land acquisition and opposition protests continue, the government has begun execution of Phase-1, which includes Gandhi Sarovar, an East-West Corridor, a Rs 4,100 crore ADB-backed funding plan, and the construction of 39 new STPs.

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