In a landmark move to address Hyderabad’s chronic water scarcity and rejuvenate the city’s ailing Musi River, Chief Minister A. Revanth Reddy is set to lay the foundation stone on Monday for the ambitious Godavari Drinking Water Scheme Phases II and III. The ₹7,360 crore project, executed under the innovative Hybrid Annuity Model (HAM), promises to deliver daily piped water supply to every household in Hyderabad by December 2027 while simultaneously revitalizing key reservoirs and smaller lakes as part of the Musi River rejuvenation initiative.

The announcement, shared via the Chief Minister’s official X handle, has sparked widespread optimism among Hyderabad’s residents, who have long grappled with inconsistent water supply and the deteriorating state of the Musi River. The project is poised to be a game-changer, addressing both the city’s drinking water needs and its environmental restoration goals in one fell swoop.

A bold vision for Hyderabad’s water security

The Godavari Drinking Water Scheme Phases II and III aim to harness 20 TMC (thousand million cubic feet) of water from the Mallannasagar reservoir, a key component of Telangana’s extensive water management infrastructure. Of this, 17.5 TMC will be allocated to meet Hyderabad’s drinking water demands, ensuring a reliable, daily piped water supply to every household in the city. The remaining 2.5 TMC will be diverted to replenish the Osman Sagar and Himayat Sagar reservoirs, which have historically served as critical water sources for the city but have faced depletion due to urbanization and erratic monsoons.

In addition to bolstering these major reservoirs, the project includes plans to rejuvenate seven smaller lakes along the water supply route. This holistic approach not only secures drinking water for Hyderabad’s growing population but also supports the ecological restoration of water bodies integral to the city’s heritage and environmental health.

Chief Minister Revanth Reddy emphasized the transformative potential of the scheme, stating, “This project is a cornerstone of our commitment to ensuring water security and environmental sustainability for Hyderabad. 

By integrating the Musi River rejuvenation with a robust drinking water supply system, we are building a future-ready city that meets the needs of every household.”

Hybrid Annuity Model: A new approach to infrastructure funding. The Godavari Drinking Water Scheme will be executed under the Hybrid Annuity Model (HAM), a public-private partnership framework designed to balance financial responsibility and project efficiency. Under this model, the Telangana government will fund 40% of the project’s Rs. 7,360 crore cost, with the remaining 60% borne by the contracting company. This innovative funding mechanism is expected to accelerate project completion while ensuring accountability and quality in execution.

The HAM model has gained traction in recent years for large-scale infrastructure projects in India, as it mitigates financial risks for the government while incentivizing private partners to deliver projects on time. The Godavari Drinking Water Scheme’s adoption of this model reflects Telangana’s forward-thinking approach to infrastructure development, aligning with national trends toward sustainable and efficient project financing.

Musi River Rejuvenation: A dual-purpose initiative

The integration of the Godavari Drinking Water Scheme with the Musi River rejuvenation project underscores the state government’s commitment to addressing Hyderabad’s environmental challenges. The Musi River, once a lifeline for the city, has suffered from pollution, encroachment, and neglect, rendering it a shadow of its former self. By channeling 2.5 TMC of fresh water from the Mallannasagar reservoir to Osman Sagar and Himayat Sagar, the project aims to restore these reservoirs’ capacity to support the Musi’s ecological revival.

The rejuvenation effort is not limited to the reservoirs. The replenishment of seven smaller lakes en route will enhance local biodiversity, improve groundwater levels, and create a network of revitalized water bodies that contribute to the city’s overall environmental health. These efforts align with broader national and global goals of sustainable urban development and climate resilience.

Timeline and impact

The Godavari Drinking Water Scheme Phases II and III are targeted for completion within two years, with the goal of ensuring daily piped water supply to Hyderabad households by December 2027. This ambitious timeline reflects the urgency of addressing Hyderabad’s water challenges, particularly as the city’s population continues to grow and urban pressures intensify.

Once completed, the scheme is expected to transform the lives of millions of Hyderabad residents. Currently, many households rely on erratic water supply schedules or expensive private water tankers, particularly in the city’s peripheral areas. The promise of daily piped water will not only improve quality of life but also reduce financial burdens on families and promote equitable access to clean water.

Local residents and community leaders have expressed enthusiasm for the project. “This is a long-overdue initiative,” said Priya Rao, a resident of Banjara Hills. “Daily water supply will make a huge difference, especially for families in underserved areas. Plus, cleaning up the Musi River will restore pride in our city’s heritage.”

Challenges and Expectations

While the project has generated significant excitement, experts caution that its success will depend on effective execution and coordination between the government and private partners. Large-scale water supply projects often face challenges such as land acquisition disputes, environmental clearances, and technical complexities in water diversion and treatment. The government’s decision to adopt the HAM model is expected to mitigate some of these risks, but rigorous oversight will be critical to meeting the two-year timeline.

Environmentalists have also called for transparency in the project’s ecological impact assessments, particularly regarding the diversion of 20 TMC of water from the Mallannasagar reservoir. Ensuring that the project balances human needs with environmental sustainability will be key to its long-term success.

A step towards a sustainable future

As Chief Minister Revanth Reddy prepares to lay the foundation stone for the Godavari Drinking Water Scheme Phases II and III, Hyderabad stands at the cusp of a transformative era. The project’s dual focus on water security and environmental restoration positions it as a model for other Indian cities grappling with similar challenges. By December 2027, if all goes according to plan, Hyderabad could emerge as a beacon of sustainable urban development, with clean water flowing to every home and a revitalized Musi River breathing new life into the city’s ecosystem.

For now, all eyes are on tomorrow’s ceremony, where the Chief Minister will set in motion a project that promises to redefine Hyderabad’s future. As the city looks ahead, the Godavari Drinking Water Scheme represents not just a solution to immediate needs but a bold vision for a more resilient and sustainable tomorrow.