The Defence Ministry has agreed to allow utilisation of the compensation amount of ₹303.62 crore — to be paid by the Telangana Government towards acquisition of land for constructing the proposed elevated corridors — for improving the civic infrastructure in the Secunderabad Cantonment Board (SCB).
Union Minister for Coal and Mines G. Kishan Reddy announced in Hyderabad on Tuesday (July 8, 2025) that the Defence Minister Rajnath Singh has accepted his request. The Hyderabad Metropolitan Development Authority (HMDA) on behalf of the government is supposed to pay the requisite amount to the Defence Ministry and the same will be deposited in the Consolidated Fund of India account in lieu of the lands being taken over for the twin projects.
But, Mr. Reddy claimed that he had prevailed upon Mr. Singh to transfer the money to an escrow account of the SCB to be used for development works here and had already written two letters urging the same. Mr. Singh has now taken the decision and has directed the SCB to open an escrow account to make use of the funds within the civic body limits for augmenting drinking water supply, constructing retaining walls across the storm water drains, internal roads and others. Mr. Reddy has thanked the Defence Minister for this gesture, as per a press release.