The Telangana government has permitted M/s MEIL Mallannasagar Water Infra Private Limited, the special purpose vehicle (SPV) for the Mallannasagar-Ghanpur water supply project, to execute Package I under the Hybrid Annuity Mode (HAM). The state government notified December 12, 2025, as the Date of Appointment for Package I with retrospective effect, subject to the Concession Agreement. The concessionaire has been authorised to operate and maintain the completed facilities for ten years under the HAM contract. The package covers manufacturing, supplying, laying, jointing, testing and commissioning of two 3,000 millimetre (mm)-diameter mild steel (MS) pumping mains from Mallannasagar to Ghanpur, each designed to carry 10 tmcft of water. The works include a pump house and electro-mechanical installations at Mallannasagar and associated transmission components along the alignment. The concessionaire has been permitted to initially fund the works through internal accruals of Megha Engineering and Infrastructures Limited until the SPV's bank loan is sanctioned. The project scope also comprises transformers and a substation at Mallannasagar, a 1,170 MLD water treatment plant and a 40 million-litre clear water reservoir-cum-pump house at Ghanpur. The Hyderabad Metropolitan Water Supply and Sewerage Board indicated the loan sanction process would take time and therefore proposed use of MEIL internal accruals to commence work immediately. Two packages for the wider scheme were subsequently put out to tender. In January 2025 the government accorded administrative sanction of 73.6 billion (bn) for the Godavari Drinking Water Supply Scheme, Phase II and III, which also includes filling Osmansagar and Himayatsagar reservoirs for rejuvenation of the Musi river. The Package I award under the HAM structure is intended to accelerate construction and restoration works associated with the scheme. Project delivery and financing arrangements will proceed subject to finalisation of the Concession Agreement and bank sanction.