Warangal sewerage project gets major boost as Centre clears ₹5,000 crore German funding proposal

Account subscription benefits alongside Premium Stories, Editorials, Opinions and more. Unlock these with Subscription

The Greater Warangal Municipal Corporation’s (GWMC) ₹5,257-crore Comprehensive Sewerage and Wastewater Management Transformation Project received a major boost with the screening committee of the Department of Economic Affairs (DEA) approving the Telangana government’s Telangana Climate Resilient Urban Transformation Initiative (Telangana-CRUTI) for external assistance of ₹5,000 crore (€500 million) from Germany’s development bank KfW.

At a meeting held in New Delhi on Friday under the chairmanship of the Additional Secretary of the Department of Economic Affairs, Municipal Administration and Urban Development (MA&UD) Secretary T.K. Sreedevi presented the proposal, outlining the programme’s objectives, priority investments and implementation framework. The committee subsequently accorded its approval.

A flagship component of the programme is the construction of an underground sewerage network in Warangal, along with the upgradation of wastewater treatment facilities and measures to promote the reuse of treated wastewater.

Telangana-CRUTI programme will also support investments in 24x7 water supply, stormwater management, waterbody rejuvenation, integrated solid waste management, blue-green infrastructure and sustainable mobility across priority Urban Local Bodies (ULBs).

The proposal received support from both the Ministry of Housing and Urban Affairs (MoHUA) and NITI Aayog. MoHUA recommended the proposal subject to the preparation of project-specific Detailed Project Reports (DPRs) by the Telangana government and their submission for technical appraisal before the loan agreement is signed.

NITI Aayog endorsed the proposal while suggesting a clear project prioritisation framework and a stronger focus on urban governance and reform-linked incentives. The State government has accepted these recommendations. The overall programme cost is estimated at ₹7,143 crore, of which ₹5,000 crore will come as external assistance and ₹2,143 crore will be contributed by the State government.

The programme will also promote innovative financing mechanisms, institutional strengthening and convergence with flagship Central schemes such as AMRUT 2.0, Swachh Bharat Mission (Urban) 2.0 and the Urban Challenge Fund.

The Telangana government and the United Nations Human Settlements Programme (UN-Habitat) signed a Framework of Cooperation Agreement on Thursday to strengthen collaboration for sustainable, inclusive, resilient and future-ready urban development.

MA & UD Secretary and Director General of the National Institute of Urban Management (NIUM), T.K.