Thousands of acres unused: Sridhar Babu pushes for resolution on CPSU lands in Telangana

New Delhi: Minister Sridhar Babu met Union minister Kumaraswamy in Delhi, urging the resolution of long-pending Central Public Sector Undertakings in Telangana. Congratulating Kumaraswamy on assuming charge as Union minister, Sridhar Babu used the occasion to raise concerns over thousands of acres of prime land in Telangana, originally allotted at concessional rates to CPSUs during the 1960s to promote industrial development and employment.

“These lands were given in good faith by the erstwhile Government of Andhra Pradesh to support the Union Government’s industrial vision,” the minister noted in his letter. “However, the core objective—creation of a vibrant industrial ecosystem and sustained local employment—remains largely unfulfilled.”

The representation submitted outlines the following key facts:

- Out of 27 CPSUs with land in Telangana, many are now non-functional or have ceased operations entirely.

Example: The Cement Corporation of India (CCI) unit in Adilabad district, allotted over 2,272 acres, has remained defunct since 1998, with no steps taken for revival.

- Several CPSUs, including some still functional, are seeking No Objection Certificates (NOCs) to monetise these lands as real estate assets—defeating the original industrial purpose.

Sridhar Babu also pointed out that the Government of India is reportedly proceeding with the disinvestment or privatisation of major CPSUs located in Telangana, including:

1. Hindustan Cables Limited (HCL), Medchal-Malkajgiri – 324.875 acres

2. Hindustan Fluorocarbons Ltd. (HFL), Sangareddy – 126.325 acres

3. Indian Drugs and Pharmaceuticals Ltd (IDPL), Medchal-Malkajgiri – 551.03 acres

4. Hindustan Machine Tools (HMT), Medchal-Malkajgiri – 888.05 acres

5. Cement Corporation of India Ltd. (CCI), Adilabad – 2,272.85 acres

6. Ordnance Factory, Yeddumailaram, Sangareddy – 3,020 acres

He expressed strong concern that, in the current approach, these valuable land parcels—strategic assets of the State—could end up being transferred to private entities without any compensation to the State of Telangana.

To safeguard the interests of the State, the minister proposed two key options:

Proposal 1 (Preferred by the government)

The Union Government should formulate and implement a concrete revival plan for non-functional and sick CPSUs in Telangana, thereby fulfilling the original purpose of land allotments, boosting industrial activity, and generating local employment.

Proposal 2 (Alternative)

If revival is not viable, the State must be compensated at the current market value for the lands before any disinvestment proceeds. Telangana reserves the right to reclaim such lands if no productive use is foreseen.

Minister Sridhar Babu called for the Union Minister’s personal intervention to ensure a fair and collaborative resolution. He also requested that a follow-up meeting be convened soon to deliberate on the matter in detail and arrive at an amicable outcome.

“The Government of Telangana remains fully committed to partnering with the Ministry of Heavy Industries to accelerate India’s industrial transformation. But this must be based on principles of fairness, federal cooperation, and respect for State resources,” the minister stated.