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Telangana has introduced the Hyderabad Industrial Lands Transformation Policy (HILTP) 2025, allowing 9,292 acres of ageing or underused industrial land within and around the Outer Ring Road to be converted into multi-use zones. These areas can now be redeveloped for housing, offices, hospitals, schools and IT parks. Applicants must pay a one-time Development Impact Fee, set at 30% of SRO value for plots on roads under 80 ft and 50% for those on wider roads. Approvals will be processed swiftly through the TG-iPASS portal, with decisions expected within two weeks. A quarter of the collected fees will be used to upgrade local infrastructure, while the rest will help develop new industrial parks outside the ORR.
The Telangana government has launched an initiative to repurpose ageing or unviable industrial land inside and around Hyderabad's Outer Ring Road (ORR) through a new policy called the Hyderabad Industrial Lands Transformation Policy (HILTP) 2025. Under this move, almost 9,292 acres of industrial land can now be converted into multi-use development zones, including homes, offices, health facilities, educational institutions and IT parks. Advertisement
Of this land, 4,740 acres are already plotted for industrial use. The rest includes pockets used for infrastructure or legacy industrial estates no longer viable due to obsolete technology, underuse, or pollution.
To enable this transformation, the policy mandates a one-time Development Impact Fee (DIF). The fee is calculated based on road width: plots on roads narrower than 80 feet will pay 30 per cent of the sub-registrar (SRO) value, while those on 80-foot or wider roads will pay 50 per cent.
The application procedure is streamlined: applicants must apply via the TG-iPASS online portal, pay 20 per cent of the fee at submission, and settle the remaining 80 per cent in two instalments within 45 days. If payment is delayed beyond one month from the start of the remaining instalment window, a 1 per cent monthly penalty kicks in, and non-payment could lead to disqualification.
To ensure speedy processing, the nodal agency ? the Telangana State Industrial Infrastructure Corporation (TGIIC) - will conduct the first review within seven days, with final approval within another week. There is also a six-month window to apply under this policy.
Importantly, 25 per cent of the impact-fee revenue will be earmarked for infrastructure in the redeveloped zones. The remaining funds are planned to be used for establishing new industrial parks outside the ORR, thereby rebalancing industrial growth in the region.
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