HYDERABAD: Almost two decades after designating 117 acres in Kokapet for a prominent information technology special economic zone (IT SEZ), the Hyderabad Metropolitan Development Authority (HMDA) has decided to terminate the project and prepare the valuable land for auction, potentially yielding around Rs 12,000 crore.
HMDA has requested the Centre to de-notify the IT SEZ, allowing the state government to reallocate the land for generating revenue. Officials revealed that approximately 90 to 95 acres of the original designation are currently available and could be auctioned following the necessary approvals.
The planned SEZ was first proposed by the former Hyderabad Urban Development Authority in 2007 as an expansion of the Hi-Tec City-Gachibowli IT corridor but faced ongoing legal issues that prevented it from launching. Several companies that were allocated land either paid only part of the required amount or subsequently withdrew from the project.
With land values in the adjacent Neopolis rising sharply in recent auctions, HMDA anticipates considerable returns if the land goes to auction. In the most recent sales, land prices reached as high as Rs 151 crore per acre, with an average price around Rs 142 crore per acre.
“Initially, land was leased to 11 firms for 20 years at Rs 25 lakh per acre annually, with an additional Rs 25 lakh per acre designated for essential infrastructure, including roads, water, electricity, and other amenities,” explained a senior HMDA official.
Allotted companies included Google (20 acres), Patni Computer Systems (24 acres), Cognizant Technology Solutions (9.05 acres), Tech Mahindra (8.43 acres), Qualcomm (7.34 acres), Sonata Software (7.04 acres), C-Bay Systems (6.42 acres), Infinite Computer Solutions (4.85 acres), Conexant (4.36 acres), Intelli Group Asia (4 acres), and DQ Entertainment (2.87 acres).
Officials noted that with the exception of one company, allottees only made partial payments. As the litigation concerning land titles progressed through the high court and Supreme Court, five companies eventually withdrew from the initiative. Though legal challenges were resolved favorably for HMDA around 2012-13, the SEZ never became operational.
“The central government officially designated this land as an SEZ over a decade ago. For other uses, the Centre needs to de-notify it,” stated HMDA officials.
The state government is anticipated to formally request de-notification from the Centre, after which HMDA will begin the process of monetizing the valuable Kokapet land parcel.
