Hyderabad: The Union Budget 2026 has once again disappointed Telangana, with the Centre allocating no funds for several of the state’s critical development projects despite repeated representations by Chief Minister Revanth Reddy and senior ministers. Major proposals including the Regional Ring Road (RRR), Greenfield Highway, national highway upgrades, Musi River rejuvenation, Hyderabad integrated sewerage system, Metro Rail Phase-2 expansion, new railway lines, and airport projects failed to secure budgetary support, raising concerns over delays in infrastructure development.
The Centre also ignored Telangana’s request for ₹34,367.62 crore towards the RRR project, even as the state offered to bear 50 percent of land acquisition costs. Proposals seeking ₹45,000 crore for developing Greenfield townships, industrial clusters, and thematic hubs beyond Hyderabad’s Outer Ring Road were similarly overlooked. The state’s appeal for ₹17,000 crore to build a Greenfield Expressway linking Bandar Port with a proposed multimodal logistics park near Hyderabad found no mention in the Budget.
Further setbacks included rejection of requests to upgrade 16 state highways to national highways, construct elevated corridors on NH-765 (Hyderabad–Srisailam), widen NH-65 (Hyderabad–Vijayawada) to six lanes, and establish a semiconductor park under the national Semiconductor Mission. Commitments under the Andhra Pradesh Reorganisation Act—such as the Bayyaram Steel Plant, Navodaya Vidyalayas, and an IIM in Hyderabad—also remained unaddressed.
Funding appeals for the ₹14,100-crore Musi Riverfront Development Project, ₹17,212.69 crore for Hyderabad’s comprehensive sewerage network, ₹6,000 crore for diverting Mallanna Sagar water to the Musi River, and ₹4,170 crore for Warangal’s underground drainage system were ignored. Likewise, Telangana’s Hyderabad Metro Phase-2 expansion covering 162 km—proposed as a 50:50 Centre-State joint venture with investments of ₹24,269 crore for Phase-2A and ₹19,759 crore for Phase-2B—received no allocation.
Proposals for three new airports at Adilabad, Kothagudem, and Peddapalli, multiple railway corridors, and ₹281.6 crore for six power-sector schemes submitted by Transco and Discoms also failed to find favour with the Centre.
State leaders said the Budget reflects continued neglect of Telangana since its formation, noting that even projects directly linked to public welfare and urban infrastructure were left without financial backing.