Archive · 5 Oct 2026
Telangana’s HILT Policy Seeks Industrial Relocation, Faces Low Uptake
Telangana wants some factories in crowded parts of Hyderabad to move outside the Outer Ring Road.
The government says this could reduce pollution and make better use of land where factories have closed or become unviable.
The freed land could be used for homes and other purposes.
The government also says new industrial areas outside the city could attract investment.
But many factory owners are hesitant to move.
They worry that relocation will cost too much and that they may lose value or flexibility in using their current land.
Fewer than 200 companies had shown willingness to apply by the original deadline, so the government extended it.
The policy is also being examined by the Telangana High Court.
The HILT Policy aims to move polluting or economically unviable industries from within the Outer Ring Road to locations outside it, while converting freed land into multi-use zones.
The policy cites urban growth, pollution and health concerns, industrial closures, and the economic potential of underused land as reasons for the transformation.
The government is targeting 9,292 acres across 22 industrial estates; it identified about 4,740 acres as potentially convertible after allowing for roads and infrastructure.
Fewer than 200 companies had indicated willingness to apply by the initial deadline, prompting the government to extend the application deadline to October 31.
The government collected Rs 150 crore in Development Impact Fees against a Rs 1,500 crore target, and the policy is facing legal scrutiny in the Telangana High Court.
- Who
- The Telangana State government and Telangana Industrial Infrastructure Corporation (TGIIC) are implementing the policy; industrial-unit owners are being asked to relocate.
- What
- The Hyderabad Industrial Lands Transformation (HILT) Policy encourages relocation of polluting or unviable industries outside the Outer Ring Road and conversion of vacated land into multi-use zones.
- When
- The policy was launched in November 2025; the application deadline was extended to October 31.
- Where
- Industrial estates within and near Hyderabad’s Outer Ring Road, with proposed relocation sites outside it.
- Why
- The government cites pollution and public-health concerns, urban growth, unviable or underused industrial land, and the potential to generate revenue and support development.
Government’s case
Industry owners’ concerns
Relocation and urban benefits
Government’s case
The government presents relocation as a way to address pollution and public-health risks, use urban land more productively, and develop industrial areas outside the city.
Industry owners’ concerns
Many owners are reluctant to relocate, saying that moving factories and establishing new units would require substantial capital.
Use of vacated land
Government’s case
The policy aims to turn freed industrial land into multi-use zones, including residential and commercial uses, unlocking economic value and revenue.
Industry owners’ concerns
Some managements question how the land may be used after relocation and seek assurances that no new restrictions will interfere with residential or commercial use.
Financial incentives and timing
Government’s case
The government has offered incentives, including use of old Sub Registrar Office land prices, extended the application deadline, and says it is willing to discuss grievances.
Industry owners’ concerns
Owners cite high relocation and registration costs, uncertainty about real-estate demand, and concern that relocation may not provide an immediate benefit.
- Policy name
- Hyderabad Industrial Lands Transformation (HILT) Policy
- Relocation area
- From industrial areas within the Outer Ring Road to locations outside it
- Target land
- 9,292 acres across 22 industrial estates
- Potentially convertible land
- About 4,740 acres, after accounting for roads and infrastructure
- Application response
- Fewer than 200 companies were willing to convert their industrial land by the initial deadline
- Development Impact Fee
- Rs 150 crore collected against a Rs 1,500 crore target
- Relocation mandate
- Government Order No. 20, issued in 2013, mandated shifting Red and Orange category polluting industries outside the Outer Ring Road
