NEW DELHI: India is strategizing to monetize the land bank of the troubled public sector undertaking (PSU) HMT Ltd by establishing artificial intelligence clusters.
Insiders report that HMT boasts the second-largest land bank in the country, following Indian Railways. At its peak, HMT owned nearly 1,800 acres; currently, around 1,100 acres remain in Hyderabad (Telangana), Bengaluru (Karnataka), Pinjore (Haryana), and Kalamassery (Kerala).
These lands were ‘gifted’ to HMT by state governments over time, with the expectation of industrial development. However, much of this land remains vacant or encroached upon, leading to disputes with states seeking reclamation.
“Investment plans totaling approximately ₹10,000 crore in public-private partnerships are also being developed for the AI clusters,” a senior official explained to RealtyDailyNews.
According to its 72nd annual report, HMT is pursuing the utilization of suitable open lands for solar power generation and other initiatives. “The company plans to lease out significant portions of land and buildings to third parties to generate rental income, classifying it as investment properties,” HMT stated.
In November 2024, the Centre assigned Niti Aayog member Vijay Kumar Saraswat to chart a revival strategy for HMT. In September of the previous year, an inter-ministerial panel evaluated the PSU’s operations, focusing on strengthening HMT’s capabilities and exploring new opportunities within Indian Railways.
Saraswat reportedly submitted a comprehensive 1,000-page report in December 2025, advocating for extensive reforms and revitalization. The Centre is currently considering this report as it deliberates the path forward for HMT. The PSU also faces substantial worker and statutory dues, which it aims to address under the forthcoming revival plan.
