Industries urge Telangana government to revise HILT implementation plan

Industry bodies have sought changes to the Telangana government's HILT policy, including extended deadlines, priority land allotment and better infrastructure at relocation sites. Representatives said relocating industries within a year is impractical and raised concerns over machinery relocation costs and conversion charges.

Hyderabad: The State government’s Hyderabad Industrial Lands Transformation (HILT) policy has run into resistance from industry bodies, which have sought changes to the implementation framework. They have urged the government to extend deadlines, ensure priority land allotment at relocation sites, develop infrastructure and address several operational concerns.

The Industries Department issued operational guidelines on May 22 for converting industrial lands located within the Outer Ring Road (ORR) into multi-use zones. As part of the policy rollout, Industries Minister D Sridhar Babu, Irrigation Minister N Uttam Kumar Reddy, Deputy Chief Minister Mallu Bhatti Vikramarka and Tourism Minister Jupally Krishna Rao met representatives of industry associations at a hotel in Hyderabad on Sunday.

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Under HILT, the government plans to relocate 22 Industrial Area Local Authorities (IALAs) and other industrial units, spread across nearly 9,300 acres within the ORR, to locations beyond the proposed Regional Ring Road (RRR). To encourage industries to opt for relocation, the government announced that units paying 10 per cent of the Development Impact Fee based on existing Sub-Registrar Office (SRO) rates would be eligible for the benefit until June 30.

Cherlapally IALA Chairman K Govinda Reddy said the deadline was too short and urged the government to extend it until December 31. He also requested that the one-year relocation period be extended to three to five years. Industry representatives said relocating industries within a year was impractical because units would need time to secure fresh licences, permissions and statutory clearances.

They also said several suggestions submitted during the Budget consultations, including the proposed 10 per cent capital contribution model, were not adequately reflected in the government order. Another major concern was the relocation of machinery. They said several industries operate heavy equipment that cannot be shifted without significant damage or financial loss. The cost of dismantling, transporting and reinstalling machinery would also be substantial.

While supporting the government’s long-term objective of moving manufacturing activity outside the ORR to make Hyderabad more liveable, industry bodies sought priority allotment of land at new industrial locations. They also asked the government to ensure essential infrastructure, including water supply, sewage treatment, reliable power supply and flood mitigation measures, is in place before relocation begins.

Industry representatives also sought direct access to senior officials and ministers to resolve issues quickly instead of routing requests through multiple administrative levels. They further requested protection of existing subsidies and incentives, clarity on land conversion procedures and safeguards for industries that have been contributing to the State through GST.

Another issue raised was the Development Impact Fee linked to SRO rates. Industry bodies said the prescribed rates were too high. For IALAs with road networks of 80 feet or more, the government fixed the conversion charge at 50 per cent of the SRO rate. The industry representatives sought a reduction to 25 per cent.

The Ministers assured the representatives that their concerns would be examined. They also indicated that the request to extend the initial payment deadline would be considered. They further promised cluster-wise meetings to address issues specific to different industrial areas. The Industries Department will serve as the nodal agency for coordinating permissions, utility connections and other support required for relocation.