The Telangana government has introduced the Hyderabad Industrial Lands Transformation Policy (HILTP) 2025, a significant urban development reform aimed at revitalising unviable industrial areas located within the Outer Ring Road (ORR). The policy allows owners of non-operational, outdated, or economically unviable industrial units to convert their land for residential, commercial, institutional, IT, and other mixed-use purposes.
Under the new framework, industrial landowners can apply for land-use conversion through the TG-iPASS portal. The approval process is supported by a one-time development impact fee, which varies based on road width. Properties located on roads less than 80 feet wide will be charged 30% of the prevailing sub-registrar value, whereas those on wider roads will pay 50%. The fee structure is designed to ensure that redevelopment contributes to improving surrounding infrastructure.
The policy impacts nearly 9,300 acres of industrial land spread across key industrial clusters such as Balanagar, Kukatpally, Katedan, Jeedimetla, and Sanathnagar. Out of this, approximately half the land area is expected to be converted into mixed-use zones, opening up large-scale opportunities for urban renewal, residential development, commercial growth, and improved public amenities.
As part of the conversion process, applicants must pay 20% of the impact fee upfront and the remaining amount within 90 days. The Telangana State Industrial Infrastructure Corporation (TGIIC) will function as the nodal agency overseeing applications, while HMDA and municipal authorities will jointly manage planning, zoning, and implementation.
To ensure balanced development, the policy mandates that 25% of the revenue generated from impact fees will be allocated for upgrading infrastructure in transformed areas and for building new industrial clusters outside the ORR. This aims to maintain industrial growth while encouraging structured urban expansion.
Officials expect the policy to help repurpose decades-old industrial estates that are no longer viable, relieving land stagnation and supporting Hyderabad’s long-term growth vision. The government has provided a six-month application window, encouraging industries to initiate the conversion process promptly.
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