Few Takers for HILT Policy in Hyderabad Amid Low Response

• As of June 30, only 50 firms evinced interest

• Relocation of industries will be expensive

• Govt sops prove duds

• TGIIC will hold a meeting soon

Hyderabad: The much-touted Hyderabad Industrial Lands Transformation (HILT) Policy, pushed by the state government against Opposition pushback, has received poor response, with few takers willing to trade their pricey lands within Hyderabad for parcels outside the Outer Ring Road limits.

The HILT Policy is an initiative of the state government that enables the conversion of industrial lands within Hyderabad's Outer Ring Road (ORR) limits into integrated, multi-use zones. It aims to relocate polluting industries outside the ORR to improve urban air and water quality while repurposing the old sites. It aims at freeing up over 9,000 acres from industrial use across 22 industrial estates, parks, and autonagars.

Plot owners seeking transformation need to pay a one-time development impact fee based on local road width (30 per cent of Sub-Registrar Office rates for plots on roads under 80 ft, and 50 per cent for roads 80 ft and above). Freed-up lands can be repurposed for residential, commercial, institutional, and recreational activities, including IT parks and hospitals. It looks like the HILT Policy, aimed at shifting all industries within the ORR limits to locations outside of it, will remain a pipe dream. For, even as the deadline to submit applications for relocation of industries ended on June 30, not more than 50 companies came forward and evinced interest to convert their industrial lands into multi-use zones.

The state government has 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 Telangana State Industrial Infrastructure Corporation (TGIIC) had invited the companies to submit the applications; however, the respective managements are not ready to relocate industries as they don't want to lose the pricey lands in Hyderabad City limits. Their considered view is that, unless real estate witnesses a boom outside ORR; it is impossible to relocate industries from Hyderabad.

Officials of the Telangana’s Industries Department said that the new guidelines were issued in June after consulting the managements of the industries in the 22 estates situated mainly at Balanagar, Moulali, Nagaram, Jeedimetla, Sanath Nagar, Cherlapally, Uppal, Kukatpally, Katedan etc. “Though the SRO values in the top industrial zones was minimum price set by the state government for property registration and stamp duty calculation, the managements worried that the relocation of their industry outside the ORR would not benefit instantly due to various factors.

The first big factor is the slump in the realty industry. It requires a lot of capital to pay for registering their own lands and to purchase lands outside and relocate the industry. The requirement of investment for registration, purchase of lands and setting up new units would be a huge burden for them. If the realty industry is booming, the managements are ready to sell the lands soon after the relocation of the units and then invest the returns wisely in land purchase. But the situation is not favourable for them in the difficult times”. Officials said that TGIIC would hold a meeting with the managements soon and seek their suggestions to modify the policy, if required, to speed up the relocations of the industrial units from Hyderabad to outside the Outer Ring Road by this year end.