A project to build a large telescope at the Spanish Observatorio del Roque de los Muchachos (ORM), in the island of La Palma, has been underway for several years. Spanish astronomy has progressed steadily to the point where gaining access to large telescope time is key to its continued and future growth. Also the technological situation within Spain is such that building a large telescope is regarded as a scientific and advanced technology endeavor worth investing in. The Gran Telescopio Canarias (GTC) project has thus been granted approval in February this year, with an allocation of 51% of the budget. Current activities of the telescope project are mainly concentrated in the conceptual design and analysis of the telescope optics, including plans for the adaptive optics, its mechanical structure and enclosure, and an active campaign of site testing. We are also carrying out detailed programs aimed at producing and testing prototype models for sensors, actuators and the control system for aligning the primary mirror segments. In the following sections, the current status of the activities being carried out by the telescope project team are described.