ADB gives preliminary approval for ₹4,100 Cr loan for Musi River Development: Minister Sridhar Babu

The Asian Development Bank (ADB) has given preliminary approval for a $500 million (₹4,100 crore) loan to fund the first phase of the Musi River development project in Telangana, State Minister for IT and Industries, Sridhar Babu, announced on Friday during a legislative assembly Q&A session.

The Musi River development project has been divided into five zones, with Zone 1 covering a total of 55 km. The first phase will focus on developing 21 km along the riverfront, stretching from Osman Sagar to Bapu Ghat. The Telangana government has already submitted a preliminary project report (PPR) to the central Ministry of Jal Shakti, requesting ₹3,188 crore under the National River Conservation Plan.

The detailed project report (DPR) for Zone 1 is currently under preparation. The development work will be carried out by the Musi Riverfront Development Corporation Limited, which is conducting a comprehensive study from Osman Sagar to Gauravelli.

To prepare a comprehensive DPR, the government has engaged a consortium led by Singapore-based engineering firm Meinhardt, in collaboration with Cushman & Wakefield India and Rios Design Studio. This team will provide expertise on project design, financial planning, bank loan coordination, and water management strategies.

Chief Minister A. Revanth Reddy outlined the government’s broader vision for the Musi River redevelopment. The state aims to begin the first phase of construction by March 31, 2026.

As part of the redevelopment, the government plans to construct the world’s tallest Mahatma Gandhi statue along the river, promoting Gandhian values to the public. Additionally, the riverfront will feature a grand Shiva temple, an international-standard mosque, and a Sikh gurudwara inspired by the Golden Temple, along with a major church - symbolizing social harmony.

The first phase will include 9.5 km from Osman Sagar to Bapu Ghat and 11.5 km from Himayat Sagar to Bapu Ghat. Bapu Ghat, a key Mahatma Gandhi memorial site in Hyderabad, will also see the development of the “Gandhi Sarovar.”

To ensure continuous flow in the Musi, 20 TMC of water from the Godavari River will be diverted - 15 TMC for Hyderabad’s drinking water needs and the remaining 5 TMC for Osman Sagar. The water transfer project to Osman Sagar is expected to be completed within two years.

The government also plans to establish business hubs and modern sewage treatment facilities along the riverfront. All tenders will be awarded only after finalizing estimates.

The DPR will be presented in the legislative assembly for suggestions and feedback from lawmakers. For the Gandhi Sarovar project, the defense ministry has allocated 60 acres immediately, with another 100 acres to follow, as approved by Defense Minister Rajnath Singh.

Flowing east from the Anantagiri Hills, the Musi joins Osman Sagar and Himayat Sagar reservoirs, which have served as Hyderabad’s main drinking water sources for over a century. The state previously established the Musi Riverfront Development Corporation to oversee pollution control and riverfront redevelopment. The corporation’s main goal is to improve the river’s environment, social life along its banks, and economic potential.