Centre Clears ₹5,000 Crore German KfW Funding for Telangana Climate Resilient Urban Transformation Initiative

Key facts

• The screening committee of the Department of Economic Affairs (DEA) approved Telangana's Telangana Climate Resilient Urban Transformation Initiative (Telangana-CRUTI) for external assistance of ₹5,000 crore (€500 million) from Germany's development bank KfW.
• The overall programme cost is estimated at ₹7,143 crore, with ₹5,000 crore as external assistance and ₹2,143 crore contributed by the Telangana government.
• A flagship component is the ₹5,257-crore Comprehensive Sewerage and Wastewater Management Transformation Project of the Greater Warangal Municipal Corporation (GWMC), including an underground sewerage network in Warangal, upgraded wastewater treatment facilities and reuse of treated wastewater.
• Telangana-CRUTI will also support 24x7 water supply, stormwater management, waterbody rejuvenation, integrated solid waste management, blue-green infrastructure and sustainable mobility across priority Urban Local Bodies (ULBs).
• The proposal was supported by the Ministry of Housing and Urban Affairs (MoHUA), subject to project-specific Detailed Project Reports (DPRs) before the loan agreement, and endorsed by NITI Aayog with suggestions on prioritisation and governance reforms, which the State government accepted.
• Separately, the Telangana government and UN-Habitat signed a Framework of Cooperation Agreement, with MA&UD Secretary T.K. Sreedevi and UN-Habitat Regional Programmes Division Director Patrick Canagasingham signing for their institutions, to promote sustainable urban development through NIUM.