Telangana: Industry bodies seek rollback of HILTP, power billing changes

Industry bodies in Telangana have urged the government to keep the Hyderabad Industrial Lands Transformation Policy in abeyance and review recent power billing changes, citing sharp cost increases, policy gaps and stalled renewable energy investments

Hyderabad: Industry and trade bodies have demanded that the State government keep the Hyderabad Industrial Lands Transformation Policy (HILTP) in abeyance and roll back the sudden implementation of Lead kVArh billing unblocking and the withdrawal of Time-of-Day (ToD) concessions.

Representatives of the Telangana Industrialists Federation, Telangana Iron and Steel Manufacturers Association, Telangana State Tool Manufacturers Association, Cherlapally Industries Association and the Federation of Telangana Chambers of Commerce and Industry voiced their concerns at a press interaction. They sought immediate policy intervention to prevent what they described as a mounting crisis for industries.

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The HILTP, which seeks to regulate land use within the Outer Ring Road limits, lacks clarity on relocation support, compensation and timelines, the industry bodies said. They also flagged the absence of a clear plan for developing alternative industrial zones outside the ORR.

Industry representatives said that while urban planning was necessary, shifting industrial units was far more complex than relocating residential colonies. Relocation, they said, involved years of planning, regulatory approvals, infrastructure development and workforce realignment. They urged the government to pause the policy and initiate detailed consultations.

The bodies also expressed strong concern over the sudden unblocking of Lead kVArh billing by DISCOMs, which they said had led to a sharp rise in power costs for commercial and industrial consumers. The move effectively forced industries to move away from lead power factor conditions within a three-month period. Several units have reported steep increases in electricity bills. An industrial unit in Ranga Reddy district saw its monthly power bill rise from about Rs 35,000 to nearly Rs 52,000.

kVArh billing relates to charges on reactive energy drawn from the grid. When a consumer operates under a lead power factor, reactive energy is fed back into the grid rather than consumed. By unblocking Lead kVArh billing, DISCOMs are now charging consumers for reactive power that is supplied into the grid, industry bodies argued.

They pointed out that such operations traditionally helped grid stability and were not penalised. Under the current system, both consumers drawing reactive power and those supplying it are being charged, which defeats the objective of reactive power management, they said.

Industry representatives said the measure had been implemented without a phased rollout, technical preparedness or adequate awareness, making it punitive rather than corrective. They demanded the constitution of an expert committee with representatives from industry associations, technical institutions, power generators and DISCOMs.

The committee, they said, should assess the grid’s reactive power needs, agricultural load impact and ground-level constraints faced by consumers, and prepare a transition roadmap before any further rollout.

The industry bodies also flagged delays in renewable energy investments due to pending No-Objection Certificates, hurdles in open access procurement, high additional surcharges, wheeling charges and property taxes.

The Clean and Green Energy Policy announced in January 2025 has yet to result in the issuance of NOCs to solar developers, they said, effectively stalling investments and hurting investor confidence. They further demanded the restoration of the earlier night ToD concession of Rs 1.50 per unit or a higher concession during daytime hours, citing the increasing share of low-cost solar power in daytime supply.

Without meaningful tariff incentives, ToD billing becomes a cost burden instead of a demand-management tool, the industry bodies said, stressing the need to share the benefits of cheaper solar power with industrial consumers.