"Don't Want To Turn Hyderabad Into Delhi": Telangana Minister Defends Land Conversion Policy

The political battle over Telangana's Hyderabad Industrial Lands Transformation Policy (HILTP) intensified today, with Deputy Chief Minister Mallu Bhatti Vikramarka launching a powerful counterattack against the Bharat Rashtra Samithi or BRS. 

The policy allows formal conversion of industrial lands within and around the Outer Ring Road into multi-use zones.

Telangana Deputy Chief Minister justified the Cabinet's decision as a move toward a pollution-free Hyderabad, accusing the previous government of conducting secret, non-transparent land conversions for "personal benefits".

Minister Mallu Bhatti Vikramarka's detailed media briefing, held after a crucial Cabinet meeting, was a direct response to BRS's allegations of a "Rs 5 lakh crore scam," shifting the focus from the policy's valuation to the need for urban environmental protection and transparency in governance.

Mallu Bhatti Vikramarka firmly defended the new policy as a necessary, transparent, and comprehensive reform, contrasting it sharply with the BRS's alleged practices.

"The agenda behind bringing the Industrial Land Conversion Policy is to make Hyderabad a pollution-free city and to generate revenue for the state," the Deputy Chief Minister stated. 

"We held in-depth discussions with senior officials, consulted stakeholders, and held extensive discussions in the Cabinet. Unlike the BRS leaders, we are not converting industrial land for individuals or for personal benefits," he said.

The Congress Minister accused the BRS of carrying out land conversion to benefit a "chosen few". 

"BRS leaders carried out industrial land conversions for their own people, for selected individuals, and only for a chosen few. There was no policy, nor any Cabinet approval. They converted lands inside industrial parks only for those they wanted to benefit," he alleged, adding a direct challenge: "Very soon, we will reveal complete details of how many industrial land conversions the BRS leaders did and who received those lands."

The most striking part of the Deputy Chief Minister's justification was his reference to the National Capital, framing the HILTP as a critical public health measure to prevent Hyderabad from facing similar environmental crises.

"In the national capital Delhi, pollution levels increased so severely that schools and government offices had to be shut," he remarked. "We do not want such a situation to arise in Hyderabad."

He explained that industrial areas like Nacharam, Moula Ali, Uppal, and Jeedimetla were established 50 years ago on the city's outskirts but are now surrounded by dense residential construction. Relocating these industries is a necessity, not a choice, he said.

"To free Hyderabad from pollution, industries now need to be relocated beyond the Outer Ring Road. Courts have suggested that cities should be freed from pollution Red Zones and Orange Zones," he added. "Therefore, we have introduced a transparent and comprehensive Industrial Land Conversion Policy."

The Deputy Chief Minister also focused on the policy's role in the state's finances, emphasising that the generated revenue is crucial for funding the Congress government's extensive welfare schemes.

"Large-scale welfare schemes need to reach the poor. Every year expenditures increase, but we have no intention of burdening people with taxes," he stressed. "It is the government's responsibility to generate revenue."

He highlighted the transparency of the new fee structure: "A transparent Industrial Land Conversion Policy has been introduced, allowing opportunity to everyone. Those with 80-foot road access will be allowed conversion at 50% of SOR (Standard Market Rate). If industrial land conversion increases, government revenue will rise."

The confrontation sets the stage for a heated political and likely legal battle, with the government committed to unlocking thousands of acres of industrial land inside the ORR for urban renewal and decentralising industry.

Minister for industries, D Sridhar Babu, explained the rationale for the policy, which allows the conversion of old, underutilised industrial lands inside the Outer Ring Road (ORR) into multi-use zones, including residential, commercial, IT and other uses.

"Our government is committed to balanced and sustainable urban development. We do not want to make Hyderabad another Delhi, a city choked with industry and pollution in its urban core," said the minister.

"This policy is not about land grabbing; it is about freeing economically locked, strategically located assets and using the generated revenue to build the next generation of industrial parks outside the ORR, ensuring our city's future is green and viable," he said.

The Cabinet's explanation directly addresses the explosive claims made by BRS working president, KT Rama Rao. 

Days earlier, KTR had accused the Congress government of orchestrating a "colossal land scam" through the HILTP, alleging it was a blueprint to siphon off up to Rs 5 lakh crore by regularising 9292 acres of prime land at throwaway prices.

KTR's primary criticism centred on the valuation, claiming the policy allows conversion by charging a development impact fee set at 30% to 50% of the Sub-Registrar Office (SRO) value, which he contends is already four to five times lower than the true open market price of these prime parcels in areas like Balanagar and Jeedimetla. He also warned that a future BRS government would cancel all transactions under the HILTP.

The minister swiftly pushed back, citing the need for urban renewal and decentralisation. The government's policy note emphasises that industrial estates established decades ago are now deeply embedded within the city's dense residential and commercial areas. 

Due to outdated technology, market shifts, and environmental incompatibility, many of these units are either unviable or underutilised. HILTP aims to unlock this land for modern urban needs.

The minister clarified that 25% of the revenue collected from the conversion fee will be "ring-fenced" specifically for developing new, state-of-the-art industrial parks and associated infrastructure beyond the ORR. 

The government accused the BRS of hypocrisy, pointing out that the previous government had also issued Government Orders (GOs) in August 2023, just months before the elections, to grant freehold rights (full ownership) over certain leased industrial lands, and enquired about the revenue they collected during that process. The minister stated that the current policy merely provides a formal, transparent option for land conversion, with a fixed impact fee.

Officials project the policy could generate an estimated revenue of Rs 4,000 to Rs 5,000 crore if all eligible applicants opt for conversion.

The policy, however, has set the stage for a prolonged political and legal battle, with the BRS vowing to take its opposition to the streets and the courts.