The telugu font tel is a Metafont font, developed by Lakshmi V. S. Mukkavilli.
This font is not bundled with the itrans package, but is available at many FTP sites. This font may be available in the separate font archive containing extra fonts, named itransxt.zip, which may be available in the same place you obtained the main ITRANS archive. [The authors use the restrictive GPL to license their software, which is really too bad, but because of that, I am unable to include their fonts with the main ITRANS archive.]
The telugu font is in a file called tlgutx.tar.Z. Use WWW search tools to locate this file, search for the substring tlgutx. You can find this at any TeX CTAN archive (ex: ftp.cdrom.com or ctan.tug.org, directory /tex-archive/language/telugu).
Note that the TeluguTeX package is also capable of typesetting telugu documents--without the need for a pre-processor.
Since this is a TEX font, this interface cannot be used. (The Text interface directly produces PostScript or HTML, and it requires a PostScript font or TrueType font.)
HTML output can be produced using the Tikkana TrueType fonts. These fonts are available somewhere on a web, use a search engine to locate them.
The IFM file to use is tikkana.ifm.
The support for the Tikkana fonts was added by: Shree, and Devarakonda Venkata Narayana Sarma email@example.com
ITRANS Home Page: http://www.aczoom.com/itrans/