Telangana to Overhaul Land Pooling Scheme with Bold LPAD Law, Paving Way for Mini-Townships Across Greater Hyderabad

Hyderabad: In a major step toward boosting planned urban expansion, the Telangana government is preparing to introduce a Land Pooling Area Development (LPAD) law under the ambit of the Hyderabad Metropolitan Development Authority (HMDA).

The new framework comes in the wake of poor response to the Land Pooling Scheme (LPS) – 2017 and is expected to streamline development by incorporating best practices from other Indian states.

Why the Need for a New Land Pooling Law?

The 2017 land pooling scheme aimed to develop mini-cities and townships beyond Hyderabad’s Outer Ring Road. However, it failed to deliver the expected outcomes. Only 289 acres have been acquired in the last eight years under three layouts — Inmul Narva (95 acres), Lemur (84 acres), and Pratapasingaram (110 acres) — despite large-scale plans.

Key reasons for the scheme’s failure included:

• Restrictions on pooling only patta lands, excluding assigned and ceiling lands.
• Complex guidelines that created confusion among landowners.
• Lack of sufficient compensation and incentives for farmers.

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New Draft Law: Land Pooling Area Development (LPAD)

The proposed LPAD law is expected to address the drawbacks of the earlier scheme. The state government has instructed HMDA to frame the necessary rules and guidelines. To ensure a comprehensive framework, HMDA is appointing a consultancy to develop the proposals based on successful models implemented in Maharashtra, Gujarat, and Rajasthan.

The key features of the proposed LPAD law may include:

• Voluntary land contribution by farmers with improved compensation terms.
• Inclusion of assigned and ceiling lands for pooling.
• Faster infrastructure development in pooled land zones.
• Equitable land distribution after development to original owners.

Land Pooling: A Proven Model in Other States

Unlike Telangana, several other Indian states have seen considerable success with land pooling:

• In Gujarat, the model facilitated development of townships like GIFT City.
• In Rajasthan and Maharashtra, farmers willingly contributed land in exchange for developed plots.

These successes have inspired Telangana’s attempt to relaunch the scheme in a reformed, state-wide manner.

HMDA’s Role: Expanding Development Across 10,472 Sq Km

The LPAD Act is being formulated specifically to cover the extended jurisdiction of HMDA, which spans over 10,472 square kilometers. The reform will help HMDA:

• Create a land bank in suburban areas.
• Implement township projects along national and state highways.
• Reduce the state’s reliance on land acquisition, which is often contested in courts.

Timeline and Next Steps

• Tenders have been issued for appointing a consultancy to draft the new LPAD law.
• The consultancy will be tasked with completing the draft within six months.
• The draft will likely draw from the existing policies of other states, while tailoring guidelines to suit Telangana’s urban landscape.

What’s at Stake?

If implemented successfully, the LPAD law will open doors to large-scale urban development, reduce the legal hurdles around land acquisition, and boost investor confidence in real estate and infrastructure projects.

Authorities hope the new law will finally unlock Hyderabad’s suburban potential, allowing for the creation of planned, modern townships — and ensuring that landowners and the government both benefit from sustainable development.