Telangana Cabinet Okays Conversion of Factory Land Into Residential Areas
To ensure balanced industrial growth, the Cabinet has also decided that 25 per cent of the revenue generated through land conversion will be earmarked for developing new industrial parks and supporting infrastructure beyond ORR.

Hyderabad: The state cabinet’s approval of the Hyderabad Industrial Lands Transformation Policy (HILTP) on Monday is set to open up 9,292 acres of long-idle industrial land in the heart of the city.
These tracts were allotted to industries five to six decades ago, when areas such as Balanagar, Jeedimetla, Sanathnagar, Uppal, Nacharam, Moula Ali, Medchal, Patancheru, Pashamylaram, Charlapally, Kushaiguda, Ramachandrapuram, Katedan, Mallapur and Hayathnagar lay on the outskirts of Hyderabad.
With the city’s rapid expansion over the past six decades, these regions now sit in the urban core. With the introduction of HILTP, the state government aims to convert 4,740 acres of these 9,292 acre lands into multi-use zones, paving the way for residential, commercial, IT and healthcare infrastructure.
Most industries in these localities have already shifted their operations beyond the Outer Ring Road (ORR) under government directives aimed at reducing pollution in densely populated zones. As a result, large parcels of land located in high-value corridors remain unused, despite soaring real estate demand.
Official sources said landowners will be permitted to apply for conversion through an online system, with applications accepted for a six-month period. Approvals will enable the development of apartments, integrated townships, office spaces, retail centres, hotels, educational institutions, hospitals, IT/ITeS parks and recreational facilities.
The government believes that unlocking these strategically located lands will draw substantial investments in real estate, IT and housing, creating employment and contributing significantly to the state’s economic growth. With Hyderabad continuing to expand as a major IT and business hub, the policy is expected to help meet the increasing demand for urban infrastructure.
To ensure balanced industrial growth, the Cabinet has also decided that 25 per cent of the revenue generated through land conversion will be earmarked for developing new industrial parks and supporting infrastructure beyond ORR. This, official sources said, will help maintain the momentum of industrial expansion while relieving pressure on the city’s core areas.
The policy marks a major shift in land utilisation strategy, transforming legacy industrial zones into modern, multi-purpose urban spaces while promoting industrial decentralisation outside the ORR, official sources added.

