HILT policy formulated after expert consultations, Cabinet sub-committee involved: IT Minister Sridhar Babu

The Telangana government's recent HILT policy, allowing industrial unit owners to convert their lands, is a significant development with far-reaching implications for industrial growth, urban planning, and governance in the state and potentially a model for others. The acronym HILT, which stands for 'Holders of Industrial Land to Convert,' encapsulates the core intent of this policy: to provide flexibility and unlock the economic potential of industrial land parcels.

**Background Context and What Happened:**

Historically, land use in India has been a complex subject, often governed by rigid zoning regulations. Industrial lands, once designated for manufacturing, sometimes become underutilized or even defunct due to economic shifts, technological advancements, or relocation of industries. Keeping such valuable land locked in a single-use category can stifle economic growth and lead to urban decay in older industrial zones. Recognizing this challenge, the Telangana government, after extensive expert consultations and input from a dedicated Cabinet sub-committee, formulated the HILT policy. The policy essentially permits industrial unit owners, who possess full rights over their lands, to apply for conversion of these lands to other uses, such as commercial or residential. A crucial procedural aspect highlighted by IT Minister Sridhar Babu is that applications for this conversion must be submitted through the TS-iPASS portal within a strict six-month window. This digital, time-bound application process underscores the state's commitment to efficiency and ease of doing business.

**Key Stakeholders Involved:**

Several stakeholders are directly impacted by or involved in the HILT policy. The primary beneficiaries are the **Industrial Unit Owners** who gain the flexibility to repurpose their assets, potentially realizing significant financial value from previously underperforming land. The **Telangana State Government**, including the Department of Industries and the Urban Development Department, is a crucial stakeholder, as it formulated, implements, and oversees the policy. Their interest lies in boosting economic activity, generating revenue through conversion fees, and fostering planned urban development. **Experts and Consultants** played a vital role in the policy's formulation, ensuring its legal soundness, economic viability, and practical implementability. Finally, **Local Bodies and Citizens** are indirect stakeholders, as changes in land use can impact local infrastructure, services, and the overall urban landscape.

**Why This Matters for India and Historical Context:**

Land is a state subject under the Indian Constitution (Entry 18 of the State List, Seventh Schedule, Article 246). This means states have significant autonomy in legislating on land matters. The HILT policy is a prime example of a state-level reform aimed at optimizing land use. India has long grappled with challenges related to land acquisition, land use planning, and unlocking land value for development. Policies like HILT address the issue of 'dead capital' – valuable assets that are not generating optimal returns. Historically, cumbersome land conversion processes and restrictive zoning have deterred investment and hindered urban regeneration. Telangana, formed in 2014, has been proactive in implementing reforms to attract investment, notably through the TS-iPASS (Telangana State Industrial Project Approval and Self-Certification System) Act, 2014, which provides a single-window clearance mechanism for industrial projects. The HILT policy leverages this existing framework, extending its efficiency to land conversion.

**Future Implications:**

The HILT policy holds several future implications. Positively, it could lead to increased real estate development, diversification of economic activities in former industrial zones, and significant revenue generation for the state government through conversion charges. It aligns with the 'Ease of Doing Business' philosophy, making Telangana an attractive destination for investors by providing greater certainty and flexibility. It could also facilitate urban rejuvenation by allowing old, dilapidated industrial areas to be transformed into vibrant mixed-use developments. However, potential challenges include ensuring equitable development, preventing speculative land hoarding, managing increased pressure on urban infrastructure (roads, water, sanitation), and addressing environmental concerns associated with land use changes. Robust regulatory oversight, transparent processes, and effective urban planning will be crucial to mitigate these risks and ensure sustainable development.

**Related Constitutional Articles, Acts, or Policies:**

* **Article 246 and Seventh Schedule (State List, Entry 18):** These provisions empower state legislatures to make laws with respect to 'land', including land tenures, transfer, and alienation, forming the constitutional basis for policies like HILT.

* **TS-iPASS Act, 2014:** This landmark legislation established the single-window clearance system for industrial projects in Telangana, which the HILT policy utilizes for application processing, ensuring transparency and efficiency.

* **National Industrial Policy (various iterations):** While HILT is a state policy, it contributes to broader national goals of industrial growth, manufacturing promotion, and economic development, aligning with the spirit of national industrial policies aimed at creating a conducive business environment.