Will much-vaunted TG’s HILT policy prove a hit or go kaput?

Hyderabad: The Telangana State government introduced the HILT (Hyderabad Industrial Lands Transformation) Policy aiming to generate additional revenues to meet the increasing financial requirements of the state. Officially speaking, the initiative is a framework designed for voluntary relocation of polluting or unviable industrial units from the urban core within the Outer Ring Road (ORR) to outside the ORR and convert the freed land into multi-use zones.

The government boasted that the HILT Policy is a threshold to a new industrial revolution outside the Hyderabad city (PURE region) and a boom for realty industry in Hyderabad city.

Presuming the HILT Policy to be a ‘boon’ for the state, the government made all-out efforts to convince the stakeholders to relocate polluting and underutilised industrial units from Hyderabad core urban region to areas outside the Outer Ring Road (ORR). Right from the launch of the HILT Policy in November 2025, the response from the owners of industries concerned has been almost nil, except for a few companies that have come forward to shift their units outside ORR.

With the initial deadline to submit applications for relocation being July end, less than 200 companies were willing to convert their industrial lands into multi-use zones. With no good response, the state government extended the deadline to submit the applications till October 31 with big expectations.

The state government announced several sops, including offering to convert land with old SRO (Sub Registrar Office) land prices. Under the HILT Policy, the government targets to convert 9,292 acres in 22 industrial estates owned by 2,800 manufacturing and industrial units into multi-use zones, mainly residential colonies.

The TGIIC (Telangana Industrial Infrastructure Corporation) invited the companies to submit the applications but the managements of most units are not ready to relocate industries as they don’t want to lose the costly lands in Hyderabad city. Unless real estate witnesses a boom outside ORR, it is impossible to relocate industries in Hyderabad.

The new guidelines were issued in June this year after consulting the managements of the industries in the 22 estates, including those situated at Balanagar, Moulali, Nacharam, Jeedimetla, Sanath Nagar, Cherlapally, Uppal, Kukatpally and Katedan.

One big concern of most of the managements is that the relocation of their industrial unit outside the ORR would not benefit them instantly due to various factors. Slump in the realty industry in Hyderabad city is giving jitters to the managements of the industrial units. Requirement of huge capital to pay registration to their own lands and to purchase lands outside and relocate the industry is heavily cost intensive in the current situation. Setting up new units in the relocated area is another big burden for the companies. The state government identified nearly 4,740 acres that could potentially be converted after accounting for land required for roads and infrastructure.

The policy is already facing legal scrutiny in the Telangana High Court, though the government has been moving ahead to make the HILT Policy a big success.

All told, the government could generate only Rs 150 crore through the Development Impact Fee (DIF), as against the target of Rs 1,500 crore under the policy.

Now, the implementing agency, Telangana Industrial Infrastructure Corporation (TGIIC) is struggling to move forward and achieve the goals set by the state government.

“Chief Minister A Revanth Reddy is ambitious in developing Future City and the HILT Policy would be a trigger factor to boost investments in the new net zero future city, which is becoming a hub of AI, health, education, IT, and other sectors.

Officials of the Industries Department said the onus is on the company management and their reluctance to relocate the industrial units would be considered as a serious issue. The government is ready to hold talks with stakeholders and address their grievances. The major challenge of acquiring land for the relocation of the industrial units could be resolved only if the managements shows that they are prepared to accept the HILT Policy.

Some managements are raising doubts on the multi-utility of the lands after relocation of their units. Land prices at Balanagar, Moulali, Nacharam, Jeedimetla, Sanath Nagar, Cherlapally, Uppal, Kukatpally, and Katedan industrial estates are skyrocketing. The managements are apprehensive about the sale of their lands after the shifting of the manufacturing units. The government should give an assurance that no fresh restrictions would be imposed during the multi-utilisation of the lands for residential and commercial purposes.

“The managements have the right to seek some more incentives and the same are being considered if they are viable and good for generating revenues to the state exchequer”, TGIIC officials said. The recent growth in the realty industry and increasing property registration would be showcased in the next meeting with the industry.

Before the second Global Investment Summit in December, officials said, the government wants to shift at least 50 per cent of the companies outside the ORR, which will also be a game changer to fast-track the development of the Future City with huge investment flows in the next year.

The state government is harping on the HILT Policy for generating more revenues. If the policy fails to receive a good response, the government’s objective of creating a “pollution-free Hyderabad city” would also remain a pipe dream.

ABOUT THE AUTHOR

Afzal Patan Babu

Afzal Patan Babu