The State Government’s plan to shift industries outside the Outer Ring Road limits under the Hyderabad Industrial Lands Transformation Policy (HILTP) has hit a road block as industries seek facilities and concessions for relocation.

The State Government received less than 200 applications till July end, less than 10% of close to 2,000 industrial units in possession of over 9,200 acres in the 21 industrial estates surrounding the city. Of the 193 applications, 54 have been returned on account of shortfall in the documents.

The Government could raise ₹150 crore of the anticipated ₹1,500 crore in the form of Differential Impact Fee for converting industrial plots inside the ORR limits to multi-use zones with the reluctance of the industry to respond to the Government’s offer.

As a result, the Government has extended the deadline for applying for conversion of industrial lands for three months till October 31. Though the policy is viewed as relocation of industries for ensuring a pollution-free Hyderabad, industrialists reportedly expressed their concerns, the prime being total shifting of production facilities that have been set up after painstaking efforts for decades.

Real estate prices is said to be another major reason behind the reluctance in that finding buyers to purchase the lands at current market rates has been a difficult task. This apart, purchase of new land, its registration and obtaining permissions afresh are likely to consume considerable time. The transition time which includes setting up of new units, calibration of machines and trial runs could in turn bring production to an abrupt halt causing losses to the units.

Representatives of the industry made several suggestions seeking time frame of six more months as transition time for the relocation of their units provided the Government fulfils at least some of their conditions.

Accordingly, the Government has been asked to create basic infrastructure like roads, drainages and water connections along with the provision for construction of housing facilities for the staff so that production is impacted for a minimal time. They want lands to be allotted on priority basis and extend the deadline for total shifting of the units from three to five years as the one year time stipulated will not be sufficient for their total shifting.

The Government has brought out the HILTP with a view to develop a pollution-free Hyderabad by shifting the industrial units to the Peri Urban Region Economy (PURE) region outside the ORR limits. In the process, the existing lands are proposed to be used for mixed use — residential, commercial and IT infrastructure.

Published - August 09, 2026 06:48 pm IST