Telangana Prepares Statewide Land Pooling Policy for Major Infrastructure Projects
Faced with rising land acquisition costs around Hyderabad, the Telangana government is preparing to roll out a statewide land pooling policy that allows landowners to receive developed plots instead of monetary compensation for major infrastructure works. The policy framework aims to ease the upfront financial burden on the state exchequer while expediting project execution across the state.
The state government has drafted the Telangana Comprehensive Area Development and Planning Bill, 2026, to institutionalise the framework. Under the proposed legislation, the Hyderabad Metropolitan Development Authority (HMDA), the Hyderabad Growth Corridor Limited (HGCL), the Musi Riverfront Development Corporation Limited (MRDCL), urban development authorities, and district collectors will be empowered to implement land pooling schemes.
The push comes as the government requires thousands of acres for large-scale works, including the Regional Ring Road, a greenfield expressway, a proposed bullet train terminal, and infrastructure projects within HMDA limits and the core urban region economy area, particularly in Rangareddy district. Chief Secretary Sanjay Jaju described the model as a win-win alternative to taxing land acquisition efforts across transport and irrigation works, noting that landowners retain a stake in future development through serviced plots.
The draft policy outlines two modes of execution: consent-based land pooling, where landowners voluntarily request pooling, and guided land pooling, where the state initiates the process in strategic growth belts such as ring roads, industrial corridors, and townships without requiring unanimous consent. Officials noted that guided pooling will operate within provisions of the Land Acquisition, Rehabilitation and Resettlement Act, 2013, retaining public notifications, objection windows, and rehabilitation measures.
The model has already been operationalised for select initiatives through recently issued orders, including GO 240 for the Musi riverfront project and GO 243 covering HMDA and HGCL works. Under these existing rules, patta landowners receive either a 50:50 share of developed land or 1,400 square yards per acre, whichever is lower. Land in lake or river buffer zones qualifies for 800 square yards per acre or transferable development rights, full tank level lands qualify for 400 square yards per acre or transferable rights, and occupants on government land in such zones receive 300 square yards per acre.
The proposed institutional structure includes appointing a quasi-judicial Land Reconstitution Officer to finalize plot allotments and valuations, alongside a Board of Appeal to resolve compensation and ownership disputes outside civil court jurisdiction. The bill also includes dedicated chapters for slum redevelopment, industrial clusters, and agricultural pooling, alongside safeguards preserving non-alienation conditions for assigned lands.
