HYDERABAD: The state government has rolled out the Hyderabad Industrial Lands Transformation Policy (HILTP) 2025, allowing industries within the Outer Ring Road (ORR) that are no longer economically viable due to outdated technologies to shift land use for residential and commercial purposes, upon payment of a fee. This change aims to generate revenue for the government. The cabinet approved this policy on November 17.
Officials noted that this policy will affect approximately 10,000 acres in industrial estates, parks, and auto nagars managed by the Telangana State Industrial Infrastructure Corporation (TGIIC) and related authorities, as well as standalone units within or adjacent to the ORR.
The government stated, “This policy responds to the rapid urbanization of Hyderabad, which has integrated older industrial estates such as Balanagar, Katedan, and Kukatpally within the ORR. Many industries in these regions face economic challenges due to outdated technologies and operational compliance in dense urban settings.”
According to the policy, a one-time development impact fee will be charged based on government market values established by the registration department. Fees will vary based on road classifications—30% of sub-registrar values for plots on roads less than 80 feet wide and 50% for those on wider roads.
The TGIIC will function as the sole nodal agency for implementing this scheme. The Hyderabad Metropolitan Development Authority (HMDA) and the municipal administration department will issue a master notification for land-use changes across designated zones.
Unit holders can voluntarily apply through the TG-iPASS portal by paying 20% of the fee at the time of application, with 80% due in two installments over 90 days. TGIIC will allocate 25% of revenue for infrastructure in the converted zones and new clusters outside the ORR. A six-month deadline has been established for submitting applications after the policy’s announcement.
