HYDERABAD: In a bid to gather resources to fund its welfare promises, the Congress govt is now 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 before formation of Telangana had not started any economic activity and may potentially be permitted conversion of land use.
According to sources, 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.
“They can be converted for multiple uses. This proposal was thoroughly debated in the finance department some time back as one of the means to raise funds,” said a source privy to the developments.
According to sources, 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, sources said.
The land conversion proposal was also discussed during the BRS govt tenure to pool funds, but no further action was taken. After Congress govt came to power, a preliminary assessment was conducted to determine how many land parcels were not used for industrial purposes after being assigned to set up units.
From spending budgeted borrowings for its schemes to going for off-budget borrowings from the market via securitisation of land, the Congress govt has been exploring multiple avenues to raise funds. But off-budget borrowings (debts taken on behalf of corporations with state govt guarantee) are subject to the Fiscal Responsibility Budget Management (FRBM) Act conditions.
“But there is a possibility that the govt has not spent all of the budgeted borrowings of around Rs 20,000 crore raised this year until now, with another Rs 16,000 crore to be raised in the next quarter. This can then be utilised for loan waiver and agriculture scheme,” a source said.
