Telangana Budget 2026-27| Allocations to farm, irrigation, energy sectors remain unchanged

HYDERABAD

The Telangana government’s allocations for key sectors such as Agriculture, Energy and Irrigation almost static with slight dip in the allocation for Agriculture and Irrigation and a nominal increase for the Energy department, despite increase in the total outlay for the Budget 2026-27.

Deputy Chief Minister Mallu Bhatti Vikramarka, who holds the portfolios of Energy and Finance too, said while presenting the budget that their government was correcting the “historic mistake” committed by the previous (BRS) government and would take up Dr. B.R. Ambedkar Pranahitha Chevella project in the erstwhile Adilabad district.

The allocation made for the irrigation sector for 2026-27 is ₹22,615 crore against ₹23,355 crore allocation for the current year (2025-26). He stated that their government had fought effectively for Telangana’s rightful share in the waters of Krishna and Godavari and reiterated that their priority was completing irrigation projects.

Pending projects inherited

Stating that their government had inherited pending projects, including Palamuru-Rangareddy Lift Irrigation Scheme, he said that they were making all efforts to complete them on priority basis. To improve the water storage capacity of reservoirs silted due to neglect by the previous government, he said they had taken up de-siltation of projects such as Kaddam, Lower Manair and Mid Manair under the revenue generating model.

Other projects such as Sriramsagar, Jurala, Nagarjunasagar and Musi were also being planned to be desilted.

Allocations to energy sector

For energy sector, the allocation made for 2026-27 is ₹21,285 crore, as against ₹21,221 crore made in the previous year. The allocation includes support to the Discoms for schemes such as free power supply to agricultural pump-sets, up to 200 units of free energy supply to households under Gruhajyothi scheme and subsidised supply to a few other sectors such as handlooms.

The Deputy Chief Minister announced establishment of the third Discom purely to handle agriculture and lift irrigation connections and setting up battery energy storage systems of 1,500 MWh capacity each at Maheshwaram and Chotuppal. Similarly, the government was planning 11,460 MW capacity pumped storage hydel generation units as part of the push being given to green energy.

Solar pump-sets with 100% subsidy to 2.1 lakh tribal farmers

Under Indira Soura Giri Jala Vikasam, the government is planning to provide solar pump-sets with 100% subsidy to 2.1 lakh tribal farmers with a budget outlay of ₹12,600 crore to help them take up plantation crops in about 6 lakh acres of ‘podu’ lands. A pilot project is already being implemented in Achampet and after studying its modalities the government would replicate it across the State, Mr. Vikramarka explained.

Agri sector allocation pruned

Despite the stupendous performance being put up by the Agriculture sector, particularly in production of food grains, the allocation for it is pruned to ₹23,179 for 2026-27, from ₹24,439 crore allocated last year. The allocation includes investment support at ₹6,000 per acre given to landholding farmers, for two seasons a year under Rythu Bharosa. The budgetary support includes ₹500 per quintal bonus given to fine (A Grade) varieties of paddy and extension of micro irrigation to another 2.34 lakh acres with subsidy.