ADB Approves Rs.4,100 Crore Loan for Musi Riverfront Development in Telangana

On 2nd January 2026, D. Sridhar Babu, Minister for Industries and Commerce, Government of Telangana, announced that the Asian Development Bank (ADB) has granted in-principle approval for a Rs. 4,100 crore (USD 500 million) loan to the state government for Phase-I of the Musi Riverfront Development Project, which seeks to rejuvenate the Musi River, enhance ecological health, and develop the riverfront as a vibrant socio-economic corridor.

• Telangana government has also submitted a Preliminary Project Report(PPR) to the Ministry of Jal Shakti (MoJS) seeking Rs 3,188 crore under the National River Conservation Plan (NRCP).

About Phase-I of Musi River Development Project:

Objective: Enhance ecological, social, and economic aspects of the Musi riverfront in Hyderabad, Telangana.

Coverage: Phase-I covers 21 kilometres (km) of Zone-I, stretching from Osman Sagar (Gandipet) to Bapu Ghat and Himayatsagar to Bapu Ghat, out of the total 55 km project length.

• The overall Musi River development has been segmented into five zones for phased execution.

Implementation: Executed by Musi Riverfront Development Corporation Limited(MRDCL), a Special Purpose Vehicle (SPV) of Telangana government, with Detailed Project Report (DPR) prepared by a consortium led by Singapore-based Meinhardt along with Cushman & Wakefield India and RIOS Design Studio.

Timeline: Phase-I works to begin after cost estimates finalization by 31st March 2026.

Key Features:

• Bapu Ghat Redevelopment: Under this project, the Telangana government will redevelop Bapu Ghat and the adjoining Gandhi Sarovar into a major riverfront landmark, with special emphasis on the Mahatma Gandhi memorial.
• Cultural Restoration: Preservation and restoration of temples, mosques, gurudwaras, churches, and the 800-year-old Lord Shiva temple at Manchirevula.
• Gateway & Connectivity: Construction of the Gateway of Hyderabad, Telangana, a 55-km elevated corridor from Gandipet to Gourella, and a greenfield road connecting the Outer Ring Road.

About Musi River:

Location: Musi River, also known as Muchukunda or Musunuru River, is a tributary of the Krishna River flowing through Telangana, with Hyderabad (Telangana) built on its banks dividing Old and New City.

Origin: Originates in the Ananthagiri Hills near Vikarabad (Telangana), flows east then south at Chittaloor, and joins the Krishna River at Vadapally near Miryalaguda, Nalgonda district, spanning about 245 kilometer (km).

Reservoirs: Flows into Himayat Sagar  reservoirs and Osman Sagar reservoirs, which supplied drinking water, and the 1908 floods prompted the construction of these dams.