K T Rama Rao clarifies that the State government had no proposal to provide compensatory land against land acquired for industrial development

IT and Industries Minister K T Rama Rao on Thursday clarified that the State government had no proposal to provide compensatory land against land acquired for industrial development. However, he stated that besides paying compensation, the State government was also ensuring job for an eligible person from each family in the industries being established in such lands.

Responding to questions raised in the State Legislative Council, Rama Rao explained that about 14,561 acres of agricultural land was acquired in erstwhile Ranga Reddy district for industrial development over the years. About Rs 863.86 crore was paid as compensation. After State formation, the Telangana government alone acquired about 9,110 acres with more than 8,000 acres acquired for establishment of Hyderabad Pharma City project. 

“We are making efforts to acquire more lands required for the project, but some political people with ulterior motives are trying to obstruct it. We are confident of overcoming these hurdles and resume land acquisition to complete the Hyderabad Pharma City project,” he said.

In response to another question, the Minister confirmed that the State government was planning to register Balanagar industrial land in favour of Phase-1 unit



holders of Balanagar Cooperative Industrial Estate in Hyderabad city. 

He said a scheme was being worked out to change the lands from lease-hold to free-hold and will be announced formally after obtaining all necessary permissions well in advance. About 47 acres were leased to around 226 MSME units in Balanagar more than 50 years ago and the lease period will soon expire.

“To extend the lease period, we have two challenges. Firstly, about two-thirds of original allottees have transferred or leased these lands to others against the norms. Secondly, the value of these lands has increased exponentially. Hence, the government is examining all the options including allotment of the land to the existing units on a free-hold basis,” he explained.

Further, Rama Rao stated that land allotments were being made to industrial units only after scrutinising the extent of land required for each industry. He pointed out that about 1,400 acres which were not put to use by the allottees in the past six years, were resumed by the State government and cancellation notices were being served to more such prospective investors who failed to establish their units within the fixed time frame.