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Building approval revenue in Telangana's expanded urban region recorded only a modest increase following the merger and restructuring of municipalities into larger civic bodies. Data presented in the past week showed that revenues rose to INR 1,172 crore in 2025-26, compared to INR 1,138 crore in the previous year, despite a significant volume of 15,536 building permissions issued. The restructuring created three corporations Greater Hyderabad, Cyberabad, and Malkajgiri within the Core Urban Region. A majority of approvals were processed through instant clearance systems, primarily for smaller residential developments. The data indicates that while administrative integration has expanded jurisdiction and activity, revenue growth has remained constrained, reflecting structural changes in approval authority and shifting development patterns.
Building approval revenues in Telangana's Core Urban Region (CURE) increased marginally to INR 1,172 crore in the 2025-26 financial year following the merger and restructuring of municipalities into three civic corporations, according to official data reported in the past week, even as the number of construction permissions rose significantly across the expanded urban jurisdiction. Advertisement
The restructuring exercise, completed in recent months, reorganised the erstwhile Greater Hyderabad Municipal Corporation into three entities Greater Hyderabad, Cyberabad, and Malkajgiri municipal corporations to manage the expanded metropolitan area and streamline urban governance.
Despite the enlarged administrative boundaries and integration of multiple municipalities, revenue growth remained limited. The INR 1,172 crore collected in 2025-26 represented only a slight increase over INR 1,138 crore recorded in 2024-25, and remained significantly below the INR 1,454 crore reported in 2022-23.
During the same period, authorities issued 15,536 building permissions, indicating sustained construction activity across the region. Of these, 12,014 approvals were granted through the instant approval system, largely catering to smaller residential developments such as individual houses. A further 2,515 permissions were processed through the single-window clearance system, typically used for larger projects including high-rise and commercial developments, while 972 approvals were issued through instant registration.
The Cyberabad Municipal Corporation emerged as the largest contributor to building approval revenue, accounting for approximately 45% of the total collections during the year. The distribution reflects a concentration of development activity in western growth corridors, where availability of land and infrastructure expansion have supported new construction.
Officials indicated that much of the recent construction activity has shifted beyond the core areas of the earlier municipal limits, driven by space constraints in central locations and expansion along peripheral corridors. At the same time, the restructuring has altered the distribution of regulatory powers, with municipal corporations permitted to approve buildings up to 10 floors, while high-rise permissions are handled by the Hyderabad Metropolitan Development Authority (HMDA).
The introduction of digital processing systems, including the BuildNow portal, has further streamlined approval mechanisms, enabling faster clearances and improved transparency in application processing. However, the shift towards automated approvals particularly for smaller developments has influenced the revenue profile, given the lower fee structures associated with such projects.
The data highlights that while the merger and administrative restructuring have expanded the scope of urban governance and increased approval volumes, the anticipated rise in building permission revenues has not materialised proportionately, reflecting evolving development patterns and regulatory realignments across Telangana's metropolitan region.
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