Telangana seeks ₹5,000 crore central assistance for capital investment and education expansion

Telangana's Deputy Chief Minister Bhatti Vikramarka Mallu held discussions with Union Finance Minister Nirmala Sitharaman in New Delhi on Wednesday to request ₹5,000 crore in special assistance for the state's development initiatives.

The meeting focused on Telangana's infrastructure expansion, education sector investments, and capital expenditure plans. Bhatti Vikramarka presented formal representations to the Centre seeking additional financial support and relief from Fiscal Responsibility and Budget Management (FRBM) constraints for education-related investments.

The Deputy Chief Minister expressed gratitude for the interest-free loans extended to states over 50 years under the Scheme for Special Assistance to States for Capital Investment (SASCI). He highlighted that Telangana received ₹4,208 crore during the 2025-26 financial year and emphasized that further support would enable the state to sustain its welfare and development programmes.

Despite its status as one of India's newest states, Telangana has achieved significant growth, though debt servicing obligations from Special Purpose Vehicles between 2014 and 2023 have strained state finances. The government continues to prioritize investments in education, healthcare, rural infrastructure, and human resource development.

A centrepiece of Telangana's education strategy is the Young India Integrated Residential Schools project. The state government is committed to establishing world-class educational institutions while simultaneously expanding medical colleges across districts and strengthening rural healthcare infrastructure.

Bhatti Vikramarka presented details of a ₹30,000 crore education sector investment proposal. The plan includes constructing 105 Young India Integrated Residential Schools campuses at a cost of ₹21,000 crore, with an additional ₹9,000 crore allocated for upgrading government junior colleges, degree colleges, technical institutions, and digital infrastructure.

The Centre has already approved two major education projects with international financial backing. The ₹4,049.11 crore Young India Integrated Residential Schools project receives support from the Asian Development Bank, while the ₹4,903.44 crore Telangana Education Infrastructure Upgradation Mission is backed by the Asian Infrastructure Investment Bank.

Bhatti Vikramarka requested that loans associated with these two projects be exempted from Telangana's FRBM borrowing limits. He characterized these investments as long-term capital initiatives designed to strengthen human resource development and improve educational opportunities for Scheduled Castes, Scheduled Tribes, Backward Classes, and minority communities.

The Deputy Chief Minister emphasized that Telangana's education and infrastructure investments align with the "Viksit Bharat-2047" vision and that enhanced central support would accelerate the state's economic growth trajectory.

Finance Principal Secretary Sandeep Kumar Sultania and Planning Department Secretary Dr Gaurav Uppal accompanied Bhatti Vikramarka during the New Delhi meeting.