Ahead of municipal elections, Congress govt sanctions Rs.2,780 crore, ULBs fail to act
Development works worth Rs 2,780 crore in municipalities and corporations have failed to take off despite funding under the Urban Infrastructure Development Fund. Delays in tenders and poor contractor response have affected execution, raising doubts over completion before summer
Hyderabad: The Municipal Administration Department’s plans to take up various development works in municipalities and municipal corporations have failed to take off, contrary to the expectations of officials.
With an eye on the municipal elections, the State government sanctioned Rs 2,780 crore for taking up 2,432 infrastructure works in 138 municipalities and municipal corporations. The funds were sanctioned by the Centre under the Urban Infrastructure Development Fund scheme in October 2025, with the Centre’s share at 80 per cent and the State government contributing the remaining 20 per cent. A target was set to execute and complete the works by March 31, 2026.
Based on the works identified by the respective urban local bodies, funds were sanctioned accordingly. In Zaheerabad municipality, 65 development works were proposed with an estimated cost of Rs 18.70 crore. Similarly, 24 works were planned in Nizamabad Municipal Corporation at a cost of Rs 32 crore.
The ULB officials had planned to take up road repairs, underground drainage works, drinking water supply projects and other infrastructure-related works. The State government had issued specific instructions to senior officials in the Municipal Administration Department to closely monitor the process of floating tenders and execution of works. However, contrary to the department’s plans, barring a few municipalities, many ULBs have not floated tenders to take up the works.
The ULBs, in coordination with the respective district administrations, were required to prioritise the works and float tenders accordingly. The municipalities were expected to float tenders, execute the works and submit bills, following which payments would be cleared after scrutiny, a senior department official said.
Admitting delays in the execution of works, the official said there were several reasons, including poor response from contractors to the tenders. In a few cases, some minor works were taken up, but the completion of the council term in the meantime further delayed the process, the official added.
With summer fast approaching, the prospects of completing infrastructure works, particularly drinking water supply projects, appear bleak. Generally, it takes about two to three months to float tenders, execute works and complete them as per schedule, the official said.