HILT policy hits a road block as industries seek facilities before shifting

The State Government's Hyderabad Industrial Lands Transformation Policy (HILTP) to relocate industries outside the Outer Ring Road (ORR) limits has encountered challenges as businesses seek facilities and concessions for relocation. The government received fewer than 200 applications by July, representing less than 10% of the 2,000 industrial units occupying 9,200 acres within 21 industrial estates near the city.

Out of the 193 applications, 54 were rejected due to incomplete documentation. The government managed to generate ₹150 crore out of the projected ₹1,500 crore in Differential Impact Fees, but the industry's reluctance to comply has slowed progress. Consequently, the deadline for applying for converting industrial lands to multi-use zones has been extended until October 31.

Despite the policy aiming to create a pollution-free Hyderabad, industry representatives expressed concerns, primarily about relocating production facilities that have been established after years of effort. Additionally, finding buyers for the land at current market rates and the time required for purchasing new land, registering it, and obtaining necessary permissions pose difficulties.

The transition period, including setting up new units, calibrating machinery, and conducting trial runs, could lead to production halts and financial losses. Industry representatives requested an extended transition time of six months, provided the government addresses certain conditions. They also proposed allocating lands on a priority basis, extending the deadline from one to five years, as the initial one-year timeframe may not suffice for a complete shift.

The HILTP aims to develop a pollution-free Hyderabad by transferring industrial units to the Peri Urban Region Economy (PURE) outside ORR limits, with existing lands designated for mixed-use, including residential, commercial, and IT infrastructure.