BRS takes a stand against HILT policy: KTR raises concerns over ₹5 lakh cr land scam

The Telangana government’s Hyderabad Industrial Lands Transformation Policy (HILT), launched in 2025, is set to radically reshape the city’s industrial landscape by unlocking vast under-utilized tracts of land for mixed-use development. The policy allows old or idle industrial land within and near the Outer Ring Road to be converted into multi-use zones, including residential, commercial, IT, institutional, and recreational spaces. It also encourages the relocation of outdated or polluting industries outside the ORR, with the stated aim of modernizing Hyderabad’s urban landscape, promoting efficient land use, and generating state revenue through conversion and impact fees. The Telangana Industrial Infrastructure Corporation (TGIIC) is the nodal agency for implementing the policy, overseeing approvals, land-use changes, and fee collection.

Under HILT, a variety of new projects are now possible. Residential townships and apartment complexes can be developed on formerly industrial land, while commercial hubs such as shopping centers, offices, and hotels may also emerge. IT and ITES parks can be established to house technology companies, and institutional facilities like schools, hospitals, and research centers are also allowed. The policy further permits integrated developments combining residential, commercial, institutional, and recreational components. Approximately 9,292 acres across industrial clusters including Balanagar, Jeedimetla, Sanathnagar, Kukatpally, Katedan, Nacharam, and Uppal are eligible, of which around 4,740 acres are plotted industrial land.

Despite government claims of transparency and reform, HILT has sparked fierce political opposition and public debate. BRS Working President K. T. Rama Rao has described the policy as a “massive land scam,” alleging that prime lands valued at ₹40–50 crore per acre are being converted at just 30% of sub-registrar office rates, potentially causing public losses of ₹5 lakh crore. BRS has organized eight fact-finding committees to inspect industrial estates on December 3–4, 2025. BJP leaders have echoed these concerns, claiming the policy could result in wealth diversion of ₹6.29 lakh crore, and have petitioned the Governor to suspend the policy pending a public audit. Critics have also raised concerns about rapid approvals, limited public consultation, and the potential displacement of workers and small-scale industries, warning that long-standing industrial clusters may be disrupted.

The Telangana government, however, maintains that HILT is a reform-oriented initiative designed to unlock value from under-utilized lands, with no transfer of government-leased property. Officials emphasize that conversion fees and impact charges are intended to fund new industrial parks and infrastructure outside the ORR, supporting decentralization of industrial activity. Ministers stress that the policy was legally vetted and consulted with stakeholders, aiming to balance urban modernization with economic growth.

HILT represents a major shift in Hyderabad’s land-use strategy, with both opportunities and risks. Properly implemented, the policy could revitalize outdated industrial estates, create modern housing and office spaces, reduce urban congestion, and generate significant non-tax revenue for the state. However, rapid conversion may disrupt traditional industrial clusters, displace workers, and strain urban infrastructure. The policy’s implementation, particularly in terms of land valuation, beneficiary selection, and approvals, will determine whether it becomes a successful urban redevelopment initiative or a source of controversy.

The coming weeks are critical as political pressures intensify, with BRS fact-finding missions, BJP interventions, and public scrutiny testing the government’s claims of transparency and legality. HILT has the potential to transform Hyderabad’s industrial lands into thriving urban spaces, but mishandling could turn it into a landmark land-use controversy, affecting thousands of workers, industries, and residents. Its ultimate success will depend on transparent execution, fair valuation, careful industrial relocation, and balancing economic growth with the public interest.