New local bodies in Telangana unlikely after June 30

A separate exercise is underway to merge 13 urban bodies within the ORR into the GHMC.

Hyderabad: With preparations for the national census underway and local body elections round the corner, the State government is all set to freeze the creation of new local bodies after June 30. This move effectively halts the formation of new panchayats, mandals, districts and municipalities for at least three years.

Officials have been instructed that any geographical reorganisation made after the deadline will not be recognised for the upcoming census. This decision comes as Telangana records the highest number of geographical changes in the country since statehood, ranging from the formation of new districts and mandals to the renaming of administrative units, creation of new local bodies and merger of villages into existing ones.

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The 2026 national census, including the proposed caste census, will be conducted, based on the administrative map as it exists, on June 30, 2025. While over 250 proposals for new panchayats are pending before the Panchayat Raj department, the State government has been forced to pause all fresh approvals, despite pressure from MPs, MLAs and Ministers, who had promised new panchayats during the 2023 Assembly elections.

Sources in the government indicate that financial constraints and non-compliance with existing guidelines are key reasons behind many proposals being kept in abeyance.

“Creation of new local bodies would mean an additional burden on the State finances which we cannot afford currently. As the deadline has been set, we will not be able to entertain any requests for creation of new local bodies or revenue divisions for the next few years,” said a top official in the Panchayat Raj and Rural Development department.

With regard to urban local bodies, the State government had cleared proposals to establish six new municipalities – Mulugu, Kallur in Khammam district, Aliabad, Muduchintalapally and Yellampet in Medchal-Malkajgiri district, and Bichkunda in Kamareddy district.

Additionally, Kothagudem Municipal Corporation will be formed by merging Kothagudem and Paloncha municipalities along with seven Gram Panchayats from Sujatha Nagar mandal.

Even as new local bodies are off the table, the government is moving forward with the reorganisation of wards in 30 urban local bodies located outside Hyderabad’s Outer Ring Road (ORR).

A separate exercise is underway to merge 13 urban bodies within the ORR into the Greater Hyderabad Municipal Corporation (GHMC). The ward delimitation process is expected to be completed by June 21, paving the way for urban local body elections later this year.

Currently, Telangana has 151 municipal bodies including 16 corporations, with three new corporations recently added and 18 new municipalities proposed. Proposals for creation of more than 10 municipalities are pending. However, given the Centre’s restrictions, new municipalities are unlikely to be notified before the census deadline.