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The Telangana government on Sunday, July 5, released the draft Telangana Core Urban Region (Integrated Governance) Bill, 2026 (CURE Bill) for public consultation. If enacted, it will replace the Greater Hyderabad Municipal Corporation (GHMC) Act, 1955, which has governed Hyderabad's civic administration for more than seven decades.
According to the government, the existing law is no longer adequate for a metropolitan region that has expanded far beyond the old city limits. Hyderabad has grown from a city of around 15 lakh people in the 1950s to an urban agglomeration of nearly 1.3 crore people, with multiple civic agencies sharing responsibilities over planning, roads, water supply, transport, disaster management and public services. The CURE Bill seeks to bring these functions under an integrated governance framework.
The government said that the proposed legislation is designed to create an integrated governance model for Hyderabad's core urban region while promoting sustainable urban development, improving public services, strengthening climate resilience and making civic administration more efficient.
The draft Bill also proposes the inclusion of a transgender person as a member of municipal authorities, a move intended to improve representation in local governance.
It also removes certain outdated election disqualification provisions that the government considers obsolete.
Why is a new law being proposed?
Earlier this year, the Telangana Legislature passed the Greater Hyderabad Municipal Corporation (Second Amendment) Act, 2026, merging 27 surrounding urban local bodies into the GHMC and increasing the number of wards from 150 to 177.
However, in February 2026, the government reorganised the expanded GHMC into three separate municipal corporations: the GHMC, the Cyberabad Municipal Corporation and the Malkajgiri Municipal Corporation.
The new CURE Bill seeks to provide a single governance framework for these three municipal corporations, allowing different departments and agencies to work in a coordinated manner.
The draft Bill retains many provisions of the existing GHMC Act. These include rules relating to municipal corporations, standing committees, municipal commissioners, ward committees, elections, property tax administration, borrowing powers and animal management.
What does the Bill retain?
The proposed legislation is not a complete overhaul. It carries forward several provisions of the existing GHMC Act relating to:
> Constitution and functioning of municipal corporations
> Standing committees
> Municipal commissioners
> Ward committees
> Municipal elections
> Property tax administration
> Borrowing powers
> Regulation of animals and public spaces
The government says these provisions have largely worked well and therefore remain substantially unchanged.
What are the major changes proposed?
One of the biggest reforms is the proposed shift in property tax assessment from the Annual Rental Value (ARV) system to a Capital Value-based system under which tax will be linked to the government's market value of the property used for registration purposes.
Since market values are much higher than the rental values that have largely remained unchanged for years, the new method is expected to increase the tax payable by property owners. According to the draft Bill, the revised tax will be introduced gradually for existing buildings to reduce the immediate financial burden. However, new buildings will be taxed under the Capital Value System from the outset.
Other proposed tax reforms include self-assessment of property tax, an Integrated property Identity code, rebates for timely payment and sustainable buildings, abolition of octroi and dog tax.
It also proposes a few other changes, including the inclusion of a transgender person as a member in municipal authorities and the removal of certain outdated election disqualification provisions.
What changes does it make to urban planning?
The Bill introduces several measures aimed at simplifying approvals and improving long-term planning.
These include:
GIS-based street development plans
Integrated underground utility planning
Universal accessibility and design standards
Deemed approvals for certain building permissions
A single trade licence for businesses
A framework to promote Hyderabad's night-time economy
Graded civil penalties for some building violations instead of criminal prosecution
The government says these measures are intended to reduce procedural delays, improve coordination between departments and make urban development more predictable.
How does it change public administration?
The draft Bill proposes several new institutions to improve coordination among agencies that currently function independently.
These include:
A CURE Apex Governance Council for overall coordination
An Executive Committee for HYDRAA
Dedicated authorities for disaster management, traffic management and climate action
Authorities focusing on heritage conservation, food safety, gender inclusion and labour welfare
A CURE SMART Governance Centre for real-time monitoring and emergency coordination
An integrated digital portal for civic services
A CURE Appellate Authority for faster grievance redressal
The Bill also formally incorporates agencies such as HYDRAA into the governance framework by defining their roles and coordination mechanisms.
What changes are proposed in public health and sanitation?
The draft legislation also seeks to strengthen civic powers during public health emergencies.
Among other things, it proposes:
Special powers during epidemics and public health emergencies
Faster mechanisms for addressing public nuisances
Aligning sanitation provisions with the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act
Vesting regulation of water supply and sewerage with the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB)
What happens next?
The CURE Bill is currently only a draft.
The Telangana government has placed it in the public domain and invited comments from citizens, professionals, urban planners and other stakeholders before introducing the final legislation in the State Legislature. Any provisions, including those relating to property tax, governance structures or planning reforms, may change based on feedback received during the consultation process.