HYDERABAD: IT and Industries Minister D Sridhar Babu on Tuesday told the Telangana Assembly that the state government expects to generate Rs 10,766 crore in revenue through land conversion fees under the HILT policy.
Explaining the calculation in the Assembly, he said, “The net industrial land area is 4,740 acres. The average SRO rate is Rs 12,000 per sq yard, or Rs 5.8 crore per acre. Conversion charges will be Rs 300 per sq metre (Rs 250 per sq yard), which works out to about Rs 12.1 lakh per acre. If land is converted under existing Municipal Administration and Urban Development norms, the revenue would be only Rs 574 crore. Under the HILT policy, we can realise Rs 10,766 crore.”
He added that 54% of the land, or 2,560 acres, falls under the 30% SRO slab. “That is Rs 1.7 crore per acre, yielding Rs 4,454 crore. The remaining 46% falls under the 50% SRO slab, or Rs 2.9 crore per acre, from which we expect Rs 6,332 crore. In total, Rs 10,766 crore is expected.”
Replying to a short discussion on the HILT policy before the Assembly was adjourned sine die, Sridhar Babu said industries operating on lease land would also be shifted.
“The basic premise is SRO rates. How do you fix market value? There is no objective measure. The government fixes basic value on rational principles, and we have taken SRO rates to determine conversion charges,” he said.
On environmental concerns, he said: “Environmental aspects will be evaluated by appointing a global consultancy. A comprehensive assessment will be carried out, and relocation of industries will be based on that study. Operational guidelines will also be issued.” He added that it is not mandatory to obtain permission or clearances from the Centre to convert industrial land into residential zones.
Referring to alleged irregularities in land conversion during the previous BRS government, he said: “The chief minister has already announced that the government will order a probe. A decision will be taken in this regard.”
Clarifying the scope of relocation, the minister said industries operating from private industrial estates would also be shifted.
Factories won’t be able to fire workers: Sridhar
“Private industrial estates will be included. The industrial area in IDA, Bolaram, was developed by a private entity, Sri Venkateshwara Cooperative Industrial Society, and 39 units are functioning there,” he said.
He added that labour codes would continue to apply after relocation and that workers and employees could not be removed or terminated.
Sridhar Babu said the state government had repeatedly requested the Centre to return unused land in Hyderabad allocated to central PSUs, but there had been no response.
On investments, he said: “We have grounded 60% of the projects for which MoUs were signed. That reflects the trust we have built with industry.”