Hyderabad: Riding high on the Mahalakshmi Scheme, the Telangana government proposed an allocation of Rs 12,789 crore for the Transport, Roads, and Buildings Department in this year’s budget.
Presenting the Budget 2026-27 in the Assembly, Deputy Chief Minister Mallu Bhatti Vikramarka, who is also the Finance Minister, announced a significant portion for the TGSRTC, the Hyderabad Metro Rail Phase 2 and the Regional Ring Road (RRR) development.
TGSRTC gets Rs 6,371 crore
The government has allocated Rs 5,204.05 crore to the Telangana State Road Transport Corporation (TGSRTC), with Rs 4,305 crore for the Mahalakshmi Scheme alone. The funds will be used to reimburse TGSRTC for the cost of these services, Finance Minister Bhatti told the House.
According to Bhatti, since its inception, nearly 270 crore free journeys were undertaken, resulting in cumulative savings of Rs 9,222 crore.
A total of 600 buses through women’s Self-Help Groups (SHG) will be leased to TGSRTC. In the first phase, 494 buses will be added, amounting to Rs 177.84 crore.
The government has allocated Rs 721.21 crore as loans under the head of “Loans for Road Transport” for TGSRTC, a Rs 32.11 crore increase from last year’s budget (Rs 689.10).
The government will introduce 214 electrical ambulances under the Praja Bata–Polam Bata program with the aim of resolving power supply and technical electricity issues.
Hyderabad Metro Rail
The Telangana government has allocated a total of Rs 1,100 crore for Hyderabad Metro Rail initiatives.
Of this, Rs 600 crore will go towards the expansion of Metro Rail Phase 2 and Rs 500 crore is designated as loans to Hyderabad Metro Rail Limited (HMRL). Starting from March 31, the government will take full ownership. The government has set aside matching grants to facilitate a 50-50 joint venture with the Centre.
For the Old City Metro, the government has allocated a dedicated fund of Rs 45.34 crore for land acquisition across various municipal projects, a Rs 27.23 crore rise from last year’s budget.
Regional Ring Road (RRR)
Bhatti announced Rs 1,525 crore for land acquisition for the northern section of the Regional Ring Road (RRR).
RRR, a 340-km access-controlled expressway, is being developed as a National Highway (NH-161AA) under the Centre’s Bharatmala Pariyojana. The northern section spans approximately 161 km, connecting Sangareddy, Toopran, Gajwel, Bhongir and Choutuppal.
“This Union Budget, the Centre did not allocate any funds to the state government, which will shift toward a Hybrid Annuity Model (HAM), allowing the private sector,” he said.
Explaining the Hybrid Annuity Model, Bhattio said the state government will pay 40 per cent of the construction cost while the private sector will pay the remaining 60 per cent. This model will be spread over the course of 15 years.
The development of RRR is shared by both the state and the central governments.
Road safety and others
Bhatti proposed Rs 2.62 crore under the road safety engineering works and Rs 10 crore for various awareness programmes.
The government has granted tax exemptions worth Rs 105.16 crore to 11.75 lakh agricultural and three-wheeler vehicles.
The state will expand digital transport services, with Sarathi and Vahan platforms to be rolled out within six months. These platforms will digitalise applying driving licences and vehicle-related services, minimising visits to RTO offices and cutting down paperwork.
The government will expedite land acquisition and construction of Warangal Airport, while the Adilabad Airport master plan is in its final stage.
The government plans to establish a SAFRAN-CFM international aircraft engine MRO (Maintenance, Repair and Overhaul) facility in Hyderabad.
Under the Praja Bata–Polam Bata program, 214 electrical ambulances will be introduced to provide immediate technical support on the roads.
