The latest decision of the Revanth Reddy government to convert decades-old industrial estates within and around Hyderabad’s Outer Ring Road (ORR) into multi-use zones has given a new weapon to the Bharat Rashtra Samithi, which is beleaguered following the defeat in the recent Jubilee Hills by-elections.
For the BRS, which is facing trouble following the state governor’s approval to prosecute party working president K T Rama Rao in the Formula-E car race scam, the decision of the Revanth Reddy government has come as a god-sent opportunity ahead of the upcoming elections to the Greater Hyderabad Municipal Corporation.
The Hyderabad Industrial Lands Transformation Policy (HILTP)–2025, notified on November 22, aims to transition 9,292 acres of industrial land — including 4,740 acres of plotted land — into mixed-use zones.
The government says industrial clusters once located on the periphery have, over 50–60 years, been absorbed into the core of a rapidly expanding city, leading to pollution, traffic bottlenecks and friction between industries and dense residential neighbourhoods.
But the decision has swiftly turned into a political flashpoint. The BRS has attacked the policy as a massive land scam that benefits industrial landholders at the expense of the state.
According to BRS leader and former finance minister T Harish Rao, converting land at 30–50% of its present market value effectively hands over real estate goldmines to private entities.
Harish Rao alleges the real market value of the land is nearly Rs 5 lakh crore — far higher than the state’s projected revenue of Rs 5,000 crore from the conversion fees. By his estimate, the government is “siphoning off” Rs 4.95 lakh crore, making the decision “the biggest land loot in India.”
The BRS has further criticised the government for making a decision of such enormous financial implication without debate in the assembly.
The opposition argues that the policy lacks democratic scrutiny and is being pushed through in haste.
Industries minister D Sridhar Babu has countered the allegations sharply, calling the scam charge a “malicious distortion” of facts.
The government insists that industrial estates situated in erstwhile outskirts like Balanagar, Kattedan, Kukatpally, Jeedimetla, Charlapalli and Uppal can no longer coexist with dense residential zones.
“Redevelopment into commercial, residential, institutional and tech spaces is an urban necessity; and the policy merely creates an optional pathway for industries to convert leasehold land into freehold by paying a structured impact fee,” he said.
The government argues it is removing outdated industrial clusters to create space for integrated urban infrastructure that aligns with modern needs.
The opposition claims the policy is a pretext to legitimise land monetisation and allow select industries to profit at a fraction of true land value.
