The story so far
The Telangana State Government has come up with a new Hyderabad Industrial Lands Transformation Policy (HILTP) for strategic conversion of industrial land within and near the Outer Ring Road (ORR) to productive and integrated urban spaces.
The Government has introduced the concept of multi-zone for converting these industrial lands into residential, commercial, institutional and recreational areas in addition to IT/IteS firms. The move however drew flak from the main Opposition Bharat Rashtra Samiti (BRS) and the Bharatiya Janata Party (BJP) which sensed a huge scam in the entire process.
BRS working president K.T. Rama Rao alleged that Chief Minister A. Revanth Reddy was trying to give away the lands at throwaway prices to his “near and dear” ones in the name of land transformation policy while the BJP too termed the policy as land looting policy driven by profit motives.
Why the policy is needed?
The State Government has felt that the city’s rapid transformation and urbanisation led to enveloping of the industrial estates and parks established five to six decades ago, creating a complex set of socio-economic and environmental challenges that demand immediate and strategic intervention. Once in the city periphery, these industrial areas like Balanagar, Katedan, Kukatpally, Nacharam, Moula Ali, Uppal, Jeedimetla, Patancheru, Ramachandrapuram, Hayatnagar and Chandulal Baradari are now integral to the city’s urban core.
Vast tracts of land amounting to 9,292 acres — including stand alone ones spread over 2,000 acres — have been identified for conversion as part of the HILTP. The Government saw the issues surrounding these lands are twofold — firstly, many industrial units within these zones have become economically unviable due to several factors including outdated technology, disrupted supply chains and escalating compliance costs associated with operating in a dense urban environment. These have led to widespread closures leaving prime industrial assets under utilised and unproductive.
The Government asserted that shifting of these industries was not a new phenomenon and it had been in the air for more than a decade now. G.O. Ms. 20 issued in the erstwhile united [Andhra Pradesh] State in 2013 mandated strategic shifting of the industries, particularly those in polluting categories, to locations outside the ORR. The Telangana Industrial Infrastructure Corporation (TGIIC), on its part, is proactively developing modern, eco-friendly industrial parks externally to facilitate their relocation.
“The proposed HILTP is the logical and strategic next step to repurpose the vacated underutilised lands within ORR, transforming them into productive and integrated urban spaces,” the Government said in the policy.
Accordingly, the policy has been made applicable to all industrial estates, parks, autonagars under the TGIIC’s jurisdiction as well as standalone industrial units located within and near the ORR. The permit for conversion of these lands will have a diverse and integrated mix of activities like construction of apartments, integrated townships, office spaces, retail centres, hotels, schools, hospitals and research centres, parks, sports facilities and cultural centres in addition to technology parks and campuses aligning with the State’s GRID (Growth in Dispersion) policy.
The Government proposed to levy a one time development impact fee on the plot owners seeking conversion – the development impact fee has been fixed at 30% of Sub Registrar Office (SRO) rates for plots existing on less than 80 ft roads. Around 54.24% of the extent (9,292 acres) and 82.23% of the existing-closed industrial units fall under this category. It has been decided to levy one time fee of 50% of the SRO rates for plots on more than or equal to 80 ft roads.
What is the dispute?
BRS leaders Mr. Rama Rao and T. Harish Rao pointed to the wide variation in the per square yard rate fixed by the TGIIC and official Government-determined value within the jurisdiction of specific Sub Registrar Office (SRO) of each of the locations identified and said the adoption of the SRO rates — which are much cheaper — smacked of malpractice. The per square yard value at Nacharam has been fixed at ₹32,881 by the TGIIC while the SRO value in the same location is ₹21,000. (One square yard is equal to 0.83 sq.mt). In Moulali, the per square yard value of TGIIC is at ₹46,895, against ₹20,300 of the SRO value. Same is the case with Balanagar where TGIIC’s per square yard value stands at ₹52,523 as against the ₹18,300 of the SRO value. In Hayatanagar, the per square yard value of the TGIIC stands at ₹54,340 while per square metre SRO value is estimated at ₹12,200 making the TGIIC rate almost thrice that of the SRO value.
Mr. Rama Rao recalled that the lands collected by the Government from people for job and employment opportunities were given to industrialists at extremely low prices by previous Governments. These lands were allotted at prices far lower that the then prevailing market rates. “But the Revanth Reddy Government is now attempting to handover 9,292 acres of land to private individuals,” he alleged.
BJP legislature party leader, A. Maheshwar Reddy, alleged that the policy was a massive land scam of ₹6.29 lakh crore alleging that the move could lead to large scale misuse of valuable public assets with market value as high as ₹2 lakh a square yard.
Govt defends its action
Deputy Chief Minister Mallu Bhatti Vikramarka and other Ministers however defended the decision claiming that change of land use was proposed for the land which was not owned by the Government and it was in fact purchased by industrialists decades ago. This could be seen from the fact that stakeholders from the industry sought conversion free of cost, but the Government insisted on payment of amounts in a bid to raise resources. It was accordingly decided to allow conversion at 50% of the SRO value for lands with 80 ft roads abutting them and at 30% for those abutting roads of lesser span.
They cited previous instances where the BRS Government allowed change in land use without a policy or obtaining the consent of the State Cabinet to dole out the land to those close to BRS leadership.
Published – November 26, 2025 04:18 pm IST
