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Hyderabad, the fifth largest metropolis of India, is the state capital of Andhra Pradesh, known for its rich history and culture with monuments, mosques, temples, a rich and varied heritage in arts, crafts and dance.  Hyderabad city is located in the Telangana region of the state lies on the Deccan Plateau, 541 meters (1776 ft) above sea level, over an area of 700 kms. The original city of Hyderabad was founded on the banks of river Musi. Now known as the historic Old City, home to the Charminar and Mecca Masjid, it lies on the southern bank of the river.

It is no more just a city of Nawabs or the Charminar.  It is now a hot destination of investors in IT, BT and automotive sector from across the globe. Very recently it has been upgraded into Greater Hyderabad Municipal Corporation and has been  the focal of  massive  urban infrastructure development programs to match with its pace of  economic activity .

The Greater Hyderabad Municipal Corporation was formed by merging 12 municipalities and 600 villages around Hyderabad. The merger had become essential to provide a central security system and civic infrastructure to the scores of R&D, Key Defense and scientific institutions, multinational IT conglomerates, global financial companies that have sprung up around Hyderabad need to be secured and monitored.

“I am glad that  Hyderabad is the centre of an  Rs.26,257 crore   (over five billion dollar) infrastructure program including Greenfield international airport, elevated express highway, Metro rail fly-overs, Outer ring road, state of art drinking water systems etc.,” said the Chief Minister Dr.Y.S.Rajasekhara Reddy in an recent media interview .

The massive infrastructure program in the state capital included :

1. MRTS( PPP)                                               Rs. 8482.00
2. Outer  Ring Road                                         Rs. 4600.00
3. Radial Roads (31 roads connecting               Rs. 2027.00
    inner ring road to outer ring road )
4. Development of City road network               Rs.  500. 00
5. Bus Rapid Transport  System                       Rs.  498.00
6. Elevated Expressway – P V N Rao Express
    Highway                                                    Rs.   400.00
7. International Airport ( PPP)                        Rs. 1700.00
8. Development of Flyovers ,Bridges               Rs.   300.00
9. Augmentation of Krishna Water supply        Rs. 3600.00
10.Sewerage treatment  and disposal               Rs. 2000.00
11.Solid Waste Management(PPP)                  Rs.   200.00
12.Musi River Front Development                    Rs.   900.00
13.Heritage Conservation Works                      Rs.    100.00
14.Protection and Development of Lakes           Rs.   500.00
15.Development of Drainage/Flood canals         Rs.   300.00

                                      Grand Total         Rs. 26257.00 crores

Under the JNNRUM the State Government has approved 107 projects estimated at Rs.4281.29 crore with emphasis on providing equitable civic amenities in the state capital. Since 2004 the government has undertaken a major beautification program by developing landscaping on the arterial roads and promoting gardens and lakes for recreational purposes.

 In the budget for  2008-09  it is  said that the  158 km long  outer ring road (Rs.4000 crore)  and the P V N Rao  Express  highway ( Rs.600 crore)  besides the  GMR  Hyderabad  International Airport (Rs.2748 crore ) are among the significant  infrastructure initiatives  which are expected to change the face of Hyderabad and Andhra Pradesh  .

The Hyderabad metro rail project covering 66 kms on three high density traffic corridors is estimated to cost Rs.8482 crore for which Rs.150 crore is provided in the  2008-09 budget .

For the Krishna drinking water supply scheme phase-II a sum of rs.1082 crore had been provided in the 2007.

While the TDP government developed only roads in posh colonies and the IT corridors, the Congress Government took up massive schemes to provide basic civic amenities in urban slums through APUSP program to eradicate poverty in urban slums.

IT and training rural youth :
During this Government’s regime, Andhra Pradesh has continued to maintain high growth rate in the IT sector. IT sector has achieved 48.4% growth rate, with a turnover of Rs.18582 crores, as against the national average of about 32% during the year 2006-07.  It is worth while to mention that IT contributes to 52.09% of total exports from all sectors in the State.

It is a notion that information technology sector is open only for certain sections of the urban population of the society and that only a few with influence or economic status are getting employment in IT sector.  This Government wants to break this myth and see that the fruits of the economy are equitably distributed and shared among all sections of the Society, whether rich or poor or cosmopolitan people or common man from a village of the State of Andhra Pradesh. To achieve this goal the Dr.Rajasekhara Reddy government has ushered schemes to improve soft skills among rural graduates to make them eligible for IT jobs. English teaching is now made a permanent feature in rural  areas which have become focus of the latest concept schools set up under public–private partnership in collaboration with  corporate houses.

Old City Development:

Similarly the   government also rolled out a special package to old city at an estimated outlay of Rs.2024.65 crore for the development of the old city of Hyderabad to improve basic infrastructural facilities in the next three years.  The goal of this scheme is to bring parity and social equality among the Muslim population of the old city and to merge them into the main stream of economic development of the State. The project includes roads, street lighting, sewerage, schools, community halls, shadi khanas, repairs to mosques, drinking water and security systems.

Krishna water supply Project:

The Government has also launched  program to  complete  the  Krishna river drinking water supply scheme phase-II with an estimated cost of Rs.830 crore during  2007, which will add 90 MGD of water thereby enabling daily and 24x7 supply of  water to  all the  areas  in the  Greater Hyderabad  Municipal Corporation. 

In the first phase 90 MGD of Krishna water was added to the city water grid from the Nagarjunasagar-AMRP main canal, 26 kms from Hyderabad in 2005 at a cost of Rs.820 crore.

In view of the increasing water demand of the State Capital a feasibility study on bringing Godavari water was commissioned to M/s Water and Power Consultants (I) Ltd. (WAPCOS). The consultants say that the population of Hyderabad expected to reach 1.71 crore by 2031 and 2.40 crore by 2051 and recommended 31 TMC of water may be diverted from Godavari river by 2031 to meet the demands.

The project report to be ready by middle of 2008 in collaboration with the GHMWSSB.

To augment the protected drinking water supply to all urban local bodies the government launched 41 water supply schemes with an estimated cost of Rs.368 crore to add 302 MLD of water to the water grid. In the next two years a sum of Rs.2550 crore is being spent on another 47 schemes to add 591.11 MLD of water to the water grid to supply 122 LPCD.

The Government also launched a unique scheme to provide individual water connections to BPL residents on installment basis. “So far One lakh such individual connections have been given” says the Municipal Administration Minister Sri Koneru Ranga Rao.

The Government also has plans to provide drinking water on a 24x7 basis in the State Capital and later to all district towns. On experimental basis 24x7 water is being provided in four localities in Hyderabad and may soon be spread to more colonies. The Chief Minister Dr.Y.S.Rrajasekhara Reddy has directed that 24x7 water scheme be implemented in full in the State Capital by the end of 2008.

Presently the GHWSSB draws 265 MGD of water from Osmansagar, Himayatsagar, Maniira (phase-I and II), Singur (phase III&IV) and Krishna (Phase I & II).  Core city get 14 MGD and municipalities get 70 MGD.

The total storage capacity at FTL in TMC is 39,816 TMC as against the present availability of  24,288 TMC. The water supplied to ten municipalities - Rajendernagar, Serilingapally, kapra, Alwal, Malkajgiri, Qutubullapur, L B Nagar,  Gaddinnaram, Kukkatpally, and Cantonment areas is - 69.25  MGD.

Borewells – Power and hand bore-wells (No- 6712)-25 MGD, Public stand points –(6599), and mobile tankers (350) -  4.5 MGD.

The proposed action plan to augment drinking water supply to  growing needs of the city is to increase  supply  to 149  MGD, repairs to feeders, distributaries  and, pumps and  motor replacements at a cost of  Rs.72  crore and Rs.176.5 crore.

MUSI RIVER CLEARNING under national river action:

Presently garbage and sewerage from 18 open nalas enter the Musi river. A national plan is envisaged to clean these waters to maintain the ecology of the Musi River through treatment plants with financial support from Government of India.

Hussainsagar cleaning:

In collaboration with the Japanese financial institution of JBIC the State Government has launched a unique program of cleansing the city’s only fresh water lake in the heart land of the State Capital - Hussein sagar.  The lake is a victim of the Ganesh immersion festival wherein thousands of clay idols of ganesh are immersed in the lake causing enormous damage to the lake and the environment of the city.

The State Government took up ambitious project to cleanse the Hussain Sagar Lake with an estimated cost of Rs.310 crore for improvement of lake water quality and increasing the eco-tourism potentiality in Hyderabad city.

The Government initiative of Rajiv Udyogsri aims to facilitate skill up-gradation of students of AP for enhancing their employability in IT.  Rajiv Udyog Sri will map the individual skills before tracking and fill the gap in skills through training interventions.  IT MNCs like INFOSYS, GENPACT etc., are involved in this effort and around 2 lakh students are expected to benefit from the Rajiv Udyogsri Programme.
One more successful project was to promote self-help groups among women in urban areas. The program – Indira Kranti patham for urban areas has so far succeeded in formulating 32500 SHG’s in Hyderabad with a corpus fund of Rs.300 crore. 

The YSR government also initiated several measures to keep the Hyderabad city terrorist free during the Ganesh and Ramzan festivals by deploying over 13,000 policemen. “We have modernized the city police force with good equipment, vehicles and communication systems” says the city Police Commissioner Balwinder Singh.

Special Force to contain Terrorism

All efforts are made to ensure that the scars of the bomb blasts did not impact the economic activities and also reduce the significance of Hyderabad as a MICE destination of conventions and conference besides tourist attraction. After the last August blasts two major international and national events – National Dental Doctor’s Conference and the International Astronautical Congress, World Military Games and INFOCOM-2007 were held in the city.

While  a Special Commissionerate is set up for security of  IT corridor in the State Capital,  a special  terrorist  force is created  - OCTOPUS-  to monitor and  contain   terrorist  designs  on Hyderabad.  OCTOPUS   has already taken shape and is under training at the NPA.

The   city with  the  only  international standard   convention centre  in  South – HICC (Hyderabad  International Convention centre) is  host  to  premier  conventions  like  INCAL-2007  in December.

The Government has also taken up vast program for creation of IT infrastructure in the state capital to cater to the needs of the  growing  IT, ITES  and  BT Industry. It had promoted specialized Bio-tech parks – ICICI Knowledge park and the world class Shaporji Pallonji Bio-tech Park for incubators and drug developers.  An area of 600 sq. kms., has been declared as a GENOME VALLEY to focus on bio-technology  institutions of excellence  and attract Life  Sciences  Research  Centres. Of late Hyderabad has become the hub of clinical trails for drug discovery activities of global drug companies.

Hitec city and Finance District:

Hyderabad has been at the fore front of new economy business and infrastructural opportunities offered by the IT explosion in the country.

To facilitate the smooth functioning of the new economy units Andhra Pradesh also took lead in promoting a Financial district in Gachhi bowli in which it has attracted several International financial institutions like  Franklin Templeton and UBS.The premier  financial institution of  IRDA (insurance regulatory and development agency)has also been grounded in the financial district.

The Congress Government has promoted several IT parks and SEZ’s in private sector and also PPP mode around Hyderabad to benefit the growing new economy industries. It has also promoted lifestyle infrastructure with the participation of domestic MNC’s - Lanco, Reliance Industries, GMR and IVRCL. The city has become a shopping hub for the entire South India with major retail chains like Big Bazar, Spencers, Giant, Reliance, Metro, Alukkaas, Pantaloon, Food bazaar have set up  shops in Hyderabad.

Promotion of Integrated Satellite IT townships – In order to sustain the growth of IT in Hyderabad, reduce the congestion of IT growth in one area and for holistic development of the region, development of integrated Satellite IT Clusters/Townships are planned in Hyderabad and surrounding districts of Ranga Reddy, Mahaboobnagr, and Medak.  For this purpose, Five IT clusters are being promoted, along the side of outer ring road, as Satellite Towns for integrated development of IT townships.  IT MNCs are encouraged to take up their expansion plans in these IT clusters.

In short Hyderabad has been emerging with full-scale infrastructure for R&D, economic activity, and for tourism promotion. “In the next ten years Hyderabad is poised to become the Singapore of the East” says the chief minister r Dr.Y.S.Rajasekhara Reddy.

“We are already the hub of airlines for the South East Asian continent. Almost five domestic airlines and four international carriers have been using Hyderabad as their base for Indian operations” said the Chief Minister.  


The  158 km long  outer ring road is an important infrastructure initiative of the HUDA  in the Hyderabad Metro region passing through Patancheru-Shamshabad-Hayatnagar,Medchal-Patancheru providing connectivity to various  national high ways,  state highways, MDR’s and  other roads.

The first phase of 22 kms., and second phase of 138 kms has already been kick started . 700 acres were acquired in the phase-I and 5500 acres were acquired for phase-II. The salient features of the project costing Rs.3000 crore are:

  • Eight lane fully access controlled express highway.
  • Two lane- two way service roads on both sides of the main corridor.
  • Designed for a speed of 120 KMPH.
  • Access provided at only NH/SH junctions at a stretch of five to eight kms interval.
  • Massive rehabilitation and relief program for acquired land.
  • Contract period is for 30 months
  • Awarded to M/s BCEOM Aarvee (JV) on ICB mode consultancy for Rs.14.51 crore.
  • Work awarded to M/s. Continental Engineering Corporation, Taiwan, M/s. Corporation Transstroy, OJSC- Moscow, Russia.
  • Private land acquired is 2135.68 acres and Government land 1900 acres, Vacant land 1082.75 acres, 191.45 residential plots, structures in 179.35 acres.

In the next three years, with the completion of the International airport and the outer ring road, Hyderabad city will be on top of the other Metropolis in India. In other words,” Hyderabad will be the investment destination of the entire continent”.