HMDA Seeks De-Notification of Kokapet IT SEZ to Auction Land for Rs 2,000 Crore

The Hyderabad Metropolitan Development Authority (HMDA) has formally requested the central government to de-notify a defunct 117-acre Information Technology Special Economic Zone (IT SEZ) in Kokapet, near the Gachibowli IT corridor. The move aims to officially cancel the long-stalled project and clear the way for a public land auction that could generate an estimated Rs 2,000 crore for the state government.

Originally conceived in 2007 by the erstwhile Hyderabad Urban Development Authority (HUDA), the proposed SEZ was planned as an extension of the Hi-Tec City-Gachibowli IT corridor. However, the project ran into prolonged legal disputes and ultimately failed to take off.

According to senior HMDA officials, the land was initially allotted to 11 firms on a 20-year lease. Under the original terms, the firms were charged a lease rent of Rs 25 lakh per acre per annum. Additionally, another Rs 25 lakh per acre was to be collected from the firms to fund basic infrastructure in the SEZ, including roads, water, electricity, and other facilities.

The project stalled as several of the allotted firms either paid only a portion of the required amount or later opted out of the project entirely.

With the project now defunct, the HMDA is looking to repurpose the high-value land for state resource mobilisation. Officials stated that approximately 90 to 95 acres of the original 117-acre allotment are currently available. This land will be put up for public auction once the central government grants the requested de-notification and other required clearances are obtained.

The decision to auction the land comes amid soaring real estate values in the surrounding areas. In recent auctions in the neighbouring Neopolis area, land prices reached as high as Rs 151 crore per acre, with the average price hovering around Rs 142 crore per acre. Based on these market rates, the HMDA expects substantial financial returns from the Kokapet site.