Telangana government is looking at raising revenue by allowing land conversion of plots assigned years ago to industrial units which never took off. It was discovered that a large number of industries that had sale deeds in place before formation of Telangana had not started any economic activity and may potentially be permitted conversion of land use.
There was a huge demand for such industrial land conversion for commercial or residential use. The govt too hopes to net close to Rs 10,000 crore from such conversion. The govt needs nearly Rs 40,000 crore to fund schemes such as Rythu Bharosa, loan waiver and Rythu Bima. Also, about 20%-30% of such land is under sick and closed industries in some of the industrial parks in the state.
The maximum rate per acre can be about Rs 10 crore, but a market survey was required before any policy formulation. The govt is mulling to apply this land conversion policy to all industrial units, whether allotted to govt or private agency and even those given on lease in notified industrial areas. Single-window clearance can be given from TS-iPASS and TS-bPASS.
From spending budgeted borrowings for its schemes to going for off-budget borrowings from the market via securitisation of land, the state government has been exploring multiple avenues to raise funds.
