Hyderabad’s Rs 14,725-crore underground power cabling project hits funding roadblock

Hyderabad's ambitious Rs 14,725-crore underground power cabling project has been delayed due to funding constraints and unresolved implementation issues. Officials say the government is prioritising the creation of a third DISCOM before taking up the large-scale infrastructure project.

Hyderabad: Like several other major initiatives announced by the Congress government, the proposed underground power cabling project for Hyderabad appears to have hit a roadblock, with funding constraints and implementation challenges delaying its execution.

In November last year, the State Cabinet approved the proposal to establish an underground power distribution network across Hyderabad. The decision followed Deputy Chief Minister Mallu Bhatti Vikramarka’s visit to Bengaluru in May last year, where he studied the city’s underground cabling system. Officials also examined best practices adopted in other States before preparing the proposal.

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Based on these studies, officials estimated that implementing an underground power cabling network across the Greater Hyderabad Municipal Corporation (GHMC) limits would require an investment of Rs 14,725 crore. The city was proposed to be divided into three operational zones for phased implementation. Besides power lines, the project also envisaged laying T-Fibre and other communication cables underground.

As part of the first phase, the Telangana Southern Power Distribution Company Limited (TGSPDCL) prepared proposals to convert overhead power lines into underground cables in the Metro zone at an estimated cost of Rs 4,051 crore. The proposal, covering the Banjara Hills, Secunderabad, Hyderabad Central and Hyderabad South circles, received government approval through G.O. Ms. No. 43 issued in November last year.

Initially, the government proposed that the project be financed through TGSPDCL’s internal resources or borrowings. It also planned to involve telecom operators, internet service providers and T-Fibre in the project through a cost-sharing mechanism.

TGSPDCL subsequently submitted a Detailed Project Report (DPR) to the State government for converting overhead lines into underground cables across the identified Metro zone.

However, officials acknowledged that the project has not progressed as planned.

A senior official said several critical issues remain unresolved, the foremost being the funding model. The government is yet to decide whether a single agency should be entrusted with execution, operation and maintenance of the entire network or whether different agencies should handle different components.

Such an arrangement could also create coordination challenges with other departments because of the presence of underground water pipelines, sewerage networks and recurring road-cutting requirements for maintenance, the official explained.

The official further stated that the government’s immediate priority is the proposed establishment of a third DISCOM in the State. The underground cabling project is likely to be taken up only after that initiative is completed.

TGSPDCL’s proposed underground cabling

Description                             Kms                   Amount (in cr)

Exclusive 33 KV (HDD)             180                                  110

Exclusive 11 KV (HDD)               2,396                            1,430

Combined 33 KV & 11 KV             73                                 65

Combined 33 KV, 11 KV & LT      24                                25

Combined 11 KV & LT                  1,407                           857

Combined 33 KV & LT                 10                                    7

Main roads LTOH line                825                                149

LT OH to LT AB                         6,251                                563

RMUs                                           14,051                               823

OFC Cable                                  3,899                                  23