Telangana Approves Major Policy to Convert 9,000 Acres of Industrial Land into Mixed-Use Development Zones

In a major step towards reshaping Hyderabad’s urban landscape, the Telangana government has approved the Hyderabad Industrial Land Transformation Policy, a comprehensive initiative aimed at redeveloping more than 9,000 acres of industrial land located within the Outer Ring Road limits. The move marks one of the largest urban restructuring efforts undertaken by the state in recent years, reflecting the rapid economic and demographic evolution of Hyderabad.

Several long-standing industrial clusters including Balanagar, Kukatpally, Kattedan, Sanathnagar, Nacharam, Uppal and Jeedimetla will now be eligible for conversion into mixed-use zones. These areas, once core industrial hubs, have gradually become incompatible with modern industrial requirements due to dense urbanisation, traffic constraints and environmental challenges. The new policy aims to unlock their potential for high-value residential, commercial, institutional and IT-ITES development.

The Telangana Industrial Infrastructure Corporation (TGIIC) will oversee the implementation of the policy, ensuring a structured and transparent approval mechanism. All applications will be processed through the TG-iPASS digital platform, which is already known for streamlining industrial clearances in the state. As part of the policy framework, applicants will be required to pay a one-time development fee, determined based on the road width and infrastructure capacity surrounding the land parcel.

According to government officials, the transformation is expected to generate significant economic opportunities by enabling modern real estate projects, improving land utilisation efficiency and supporting balanced urban growth across the ORR region. The policy also aligns with Hyderabad’s long-term vision of fostering sustainable and integrated urban ecosystems that cater to both economic expansion and quality of life.

Urban planners suggest that this shift could pave the way for new housing clusters, tech parks, healthcare institutions, logistics facilities and recreational spaces, reducing pressure on the city core while promoting decentralised development. With clear regulatory guidelines and a digital approval workflow in place, the policy is poised to attract developers, investors and enterprises seeking strategic locations within Hyderabad’s growing metropolitan belt.