

The Central Government has approved ₹5,681 crore worth of Urban Challenge Fund (UCF) projects for Telangana, including three major proposals submitted by the state. The approved projects include the Khammam–Warangal–Karimnagar corridor, Warangal sewage modernization, and Karimnagar urban development works such as model roads, skywalks, foot overbridges, and non-motorized transport systems.
Out of the total project cost, the Centre will provide 25% funding while the state will contribute an equal share, and the remaining amount will be raised through HUDCO loans. A total of ₹1,420 crore has already been released by the Centre. Notably, Karimnagar was initially not included in the UCF list, but following strong efforts by Union Minister Bandi Sanjay Kumar, the city’s proposal was added and approved.
The approved UCF projects across six states in the country amount to ₹14,867 crore, with Telangana securing three key projects worth ₹5,681 crore. The Karimnagar development plan is expected to transform the city with modern infrastructure, drainage improvements, and flood management systems, making it one of the most developed urban centers after Hyderabad.













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