Musi Rejuvenation Project Gets Cabinet Nod:

Telangana Clears ₹7,345-Crore First Phase

Report By Y-Trendz

Hyderabad, July 3, 2026 — The Telangana State Cabinet has given the green light to float tenders for the first phase of the long-anticipated Musi Rejuvenation Project, clearing the way for one of the most

ambitious urban infrastructure undertakings in the city's recent history. <cite index="9-1">The cabinet approved proposals to float tenders for the project's first phase, which covers a 21-kilometre stretch from Himayath Sagar to Bapu Ghat, at a cost of Rs 7,345 crore.</cite>

The decision came despite continued pushback from opposition parties and civic groups. <cite index="9-1">Chief Minister A. Revanth Reddy chaired the cabinet meeting, and the approval went through notwithstanding objections raised from different quarters.</cite> <cite index="11-1">The Cabinet also decided to approach the Supreme Court to resolve legal objections that have been raised against the project, which is described as the brainchild of the Chief Minister.</cite>

What the First Phase Covers

<cite index="9-1">Under the first phase, work will be carried out from Himayath Sagar to the River Esa, and from the Osman Sagar–River Musa confluence point up to Bapu Ghat.</cite> The broader vision, however, extends well beyond this initial stretch. <cite index="11-1">The full project aims to transform a 55-kilometre stretch of the Musi into an iconic riverfront comparable to London's Thames.</cite>

To ensure the project moves without administrative bottlenecks, the cabinet has also cleared staffing for it. <cite index="9-1">A total of 147 new posts have been sanctioned specifically for execution and monitoring of the works, with provisions to depute additional staff on deputation if the need arises.</cite>

The Road to Cabinet Approval

The clearance did not happen overnight — it is the culmination of months of planning that began with the formation of a dedicated political oversight structure. <cite index="14-1">Back in March, facing sharp criticism from opposition parties, Chief Minister Revanth Reddy announced a Cabinet Sub-Committee comprising Deputy Chief Minister Bhatti Vikramarka, IT and Industries Minister D. Sridhar Babu, and Transport Minister Ponnam Prabhakar to address concerns and consult political parties and civic bodies.</cite> <cite index="14-1">The Chief Minister assured the Legislative Council that every displaced family would receive an adequate relief package.</cite>

By May, the sub-committee had moved into implementation planning. <cite index="13-1">The panel met on May 8 and directed officials to begin construction on an initial five-kilometre stretch within the larger 21-kilometre corridor between Himayatsagar and Bapughat, and Osmansagar.</cite> Notably, the government also signalled interest in enhancing the river's tourism and recreational potential — <cite index="13-1">the panel decided to install rubber dams at various points along the project for tourism, water storage, and to support boating and water sports, directing officials to study similar installations in Nashik and Mumbai.</cite>

Funding had already begun flowing before the formal tender approval. <cite index="12-1">In May, the state released Rs 375 crore as the first instalment for the project under the 2026–27 budget, out of a total annual allocation of Rs 1,500 crore for the year, with the order issued by Special Chief Secretary Jayesh Ranjan.</cite>

Technical work on the ground has also progressed. <cite index="10-1">The Singapore-based engineering firm Meinhardt, part of a global consortium including Cushman & Wakefield and RIOS, submitted the draft Detailed Project Report for Phase 1 on May 30,</cite> which the Chief Minister subsequently placed before the cabinet for clearance.

What Comes Next

With tenders now cleared for floating, the project moves into its execution pipeline. <cite index="10-1">Technical sanction and approval of the notice inviting tenders were expected to follow the cabinet's clearance, with the government aiming to finalise tenders and award contracts by August 19, paving the way for Phase 1 construction to begin.</cite>

The Chief Minister has also pushed for greater public engagement with the project's vision. <cite index="10-1">He instructed officials to set up a Musi Experience Centre on Necklace Road, intended to help the public understand the project and to serve as a platform for gathering feedback and suggestions.</cite>

Rehabilitation Concerns Remain Central

Displacement of riverside residents continues to be the most sensitive aspect of the plan. <cite index="13-1">The government has stated that development should not displace people but should involve them as stakeholders, with a commitment to minimising impact on existing properties and modifying project alignments where necessary.</cite> Deputy CM Bhatti Vikramarka, who heads the sub-committee, has separately directed officials to secure environmental clearances before proceeding and to set up special committees to coordinate financing, approvals, and inter-departmental coordination.

Beyond the Musi project, the same cabinet meeting also cleared several other proposals, including <cite index="9-1">land allotments for warehouse construction in five to six assembly constituencies — including 50 acres at Bollikunta in Warangal and 10 acres at Kakarlapahad in Rangareddy — along with land for a Jawahar Navodaya school in Mahabubnagar and a Kendriya Vidyalaya in Jagityal.</cite>

With tender floating now formally approved, the Musi Rejuvenation Project — first proposed as a flagship urban renewal effort for Hyderabad — enters its most concrete phase yet, though legal challenges and rehabilitation logistics remain hurdles the state government will need to navigate in the months ahead.