Telangana Budget 2025: Government Announces Ambitious Plan For India’s First Net-Zero City

The Telangana government has announced ambitious plans to develop its mega urban project, Future City, as India’s first city with Net-Zero carbon emissions through sustainable urbanization. Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka made this announcement on March 19, 2025, while presenting the state budget.

The Future City will be built near Hyderabad over a vast area of 765 square kilometers, covering 56 villages between the Srisailam and Nagarjuna Sagar highways. This project will be overseen by the Future City Development Authority (FCDA).

Major Budget Allocation for Urban Development

For the Municipal Administration and Urban Development Department, the Telangana government has allocated ₹17,677 crore in the 2025-26 budget. This funding will support infrastructure projects, smart city initiatives, and green energy development.

AI City: A Global Technology Hub

As part of the Future City project, the government plans to establish an ‘AI City’ over 200 acres. This futuristic hub will house:

• Data centers
• High-performance computing facilities
• Specialized educational programs
• A public awareness center
• A dedicated AI University

Tech giant Google has already committed to setting up an AI-powered Accelerator Center in this upcoming AI City, Vikramarka stated in his speech.

State-of-the-Art Sports Hub

The Future City will also feature a world-class Sports Hub, designed to support holistic athlete development at global standards. It will include:

• 12 specialized sports academies
• A Sports Science Center
• A Sports Medicine Center

“Designed to rival the world’s top cities, this eco-friendly, ultra-modern metropolis will feature state-of-the-art infrastructure, cutting-edge technology, and a pollution-free environment,” said Vikramarka.

Hyderabad’s Infrastructure Expansion Under H-CITI

As Hyderabad continues to grow rapidly, the government is implementing the Hyderabad City Innovative and Transformative Infrastructure (H-CITI) plan to improve urban infrastructure and ease traffic congestion.

Key H-CITI Initiatives:

• 31 flyovers
• 17 underpasses
• 10 road expansion projects
• Total investment: ₹7,032 crore
• City beautification projects worth ₹150 crore

Additionally, affordable housing communities will be developed around Hyderabad along the Outer Ring Road (ORR) to make homeownership more accessible to low-income and middle-class families.

Strengthening Flood Management and Drainage System

To prevent flooding and improve drainage, the government has approved a ₹5,942 crore Integrated Stormwater Drainage Project for Hyderabad. This will help prevent waterlogging during heavy rains.

The government has also started constructing four sewage treatment plants (STPs) with a total capacity of 20 MLD at Osman Sagar and Himayat Sagar reservoirs to enhance wastewater treatment and water quality.

Revitalizing the Musi River and Reservoirs

Under the Musi Riverfront Development Project, the government is working to restore Osman Sagar and Himayat Sagar reservoirs by replenishing them with Godavari water through the Godavari Drinking Water Supply Scheme.

“This initiative aims to restore the ecological balance of these reservoirs while securing a sustainable water supply for the future,” Vikramarka stated.

Cleaning and Upgrading Hyderabad’s Sewerage System

For the first time in decades, the Water Board has launched a large-scale desilting and cleaning initiative to restore neglected manholes and sewer lines.

Achievements of This Operation:

• 3,025 km of sewer lines cleaned
• 2.39 lakh manholes de-silted
• 25% reduction in sewerage-related complaints

These efforts have significantly improved urban sanitation, drainage efficiency, and public health.

Developing Tier-Two Cities

While Hyderabad remains the focal point of urban development, the Telangana government is also focusing on growing tier-two cities like:

• Warangal – To become a hub for education, healthcare, and IT.
• Nizamabad and Khammam – To be developed into centers for agriculture-based industries and manufacturing.

A Model for Future Urbanization

Telangana is witnessing the fastest urbanization in India, driven by rapid expansion in IT industries, infrastructure development, and transformative government policies. With the Future City project, the state aims to set an example for sustainable and smart urbanization, making it a model city for the future.