Telangana seeks to reclaim 10,000-acre unused PSU land to spur industrial growth

Hyderabad:Nearly 10,000 acres of prime land in Hyderabad, allotted by the state government to Central public sector indertakings (CPSUs) decades ago, remain unutilised, prompting the state government to push for the reclamation of these parcels. The estimated market value of these land parcels is over `40,000 crore.

According to data compiled by the state revenue department, 11 Central PSUs collectively hold 8,948 acres, of which only 2,313 acres are being utilised. This means 6,635 acres remain unused under eight operational PSUs, while three closed PSUs account for an additional 3,304 acres of unutilised land.

Prominent PSUs with significant unutilised land include Midhani, DRDO, and BDL, which together have 1,312 acres lying vacant. Other major unutilised land holdings include Ordnance Factory, Medak, having 2,000 acres unused, BHEL, Lingampally, 2,125 acres, ECIL, Cherlapally, 930 acres, HAL, Balanagar, 214 acres, DRDO and DRDL, Chandrayangutta, 55 acres

Additionally, three defunct PSUs — Cement Corporation of India (CCI) in Adilabad, Indian Drugs and Pharmaceutical Ltd (IDPL) in Balanagar, and Hindustan Machine Tools (HMT) in Quthbullapur — hold 2,290 acres, 891 acres, and 123 acres, respectively.

Official sources said that Chief Minister A. Revanth Reddy has instructed officials to engage with the concerned Union ministries to reclaim these land parcels. The state argues that these parcels were allotted at nominal or zero cost to support industrial growth and employment generation.

With Hyderabad facing a severe shortage of industrial land, the state government intends to repurpose the unutilised parcels to attract new industries. However, discussions with the Centre have hit a roadblock, as Union ministries are reportedly demanding market rates for the land. The state is seeking a compromise, urging the Centre to either return the lands free of cost or sell them at the government-assessed value instead of market prices.

While the state government is keen on facilitating industrial development through these lands, it remains unclear whether the Centre will adhere to its request. Official sources revealed that the lands' open-market valuation exceeds `40,000 crore, significantly higher than the government-prescribed valuation of `6,000 crore.