The union government did not respond positively on the Telangana government's prestigious proposal of setting up of Water Grid. Union minister Nitin Gadkari clarified that union government was not in a position to sanction funds to Telangana government for setting up Water Grid. Telangana minister K.Taraka Rama Rao revealed this in a media conference in New Delhi, this evening. Nitin Gadkari rejected Telangana government's request as it would lead to demands from other states also.