Hyderabad, March 2026 – The Comptroller and Auditor General of India has presented a comprehensive audit of the Telangana State Industrial Infrastructure Corporation’s land allotment and industrial development practices, flagging losses to the state exchequer through undervalued allotments, a majority of allotted industrial units that never commenced operations, and the diversion of ₹500 crore from Industrial Area Local Authority funds. The audit findings, covering the period up to March 2022, were tabled in the state legislative assembly on March 30, 2026, and cover TSIIC’s operations under the previous BRS government.
Undervalued Allotments and Unauthorised Committees
The audit identified specific instances of land being allotted at rates far below prevailing market values. At a hardware park in Mamidipally, 20 acres were allotted at ₹40 lakh per acre against a prevailing rate of ₹2.13 crore per acre, conferring an undue benefit of several hundred crore on the allottee. An unauthorised committee was found to have allotted over 165 acres across multiple entities without proper mandate. In one instance, the Pharma City project, expected to anchor Hyderabad’s life sciences manufacturing ambitions was delayed by more than five years in its land acquisition phase, adversely impacting projected investments and employment targets.
Non-Operational Units and the Idle Land Problem
Of the 1,642 industrial units allotted land by TSIIC across the audit period, the CAG found that the majority had either not commenced operations or their current operational status could not be established. Delays in implementation across allotted units ranged from several years to over two decades, leaving significant tracts of industrial land effectively idle. The ₹500 crore diversion from IALA funds, bodies constituted to develop infrastructure within industrial estates, further undermined the basic purpose of the allotments.
Location Context: Hyderabad’s Industrial Corridors and the Pharma City Question
Hyderabad Pharma City, planned across approximately 19,333 acres in Rangareddy and Yadadri districts, has been positioned as India’s largest integrated pharmaceutical and life sciences manufacturing cluster. Delays in land acquisition and infrastructure rollout have repeatedly pushed back its operational timeline. The CAG’s findings provide a formal audit basis for the current government’s review of legacy allotments and are likely to inform future TSIIC governance reforms.
