Telangana eyes Rs 3,000 crore from prime land auctions

Hyderabad: With state finances under pressure, the Telangana govt is turning again to high-value land sales to raise funds for key projects.

It is preparing to auction 66 acres of prime land, including—for the first time—plots in Osman Nagar — in a move that could fetch the exchequer up to Rs 3,000 crore.

Seventeen land parcels are up for grabs, with four in upmarket Raidurg and the rest in fast-developing Osman Nagar. The TGIIC recently floated a request for proposal, seeking transaction advisors to assist with the auction process. Bids for advisors must be submitted by Aug 8.

This follows the govt’s failed attempt to auction 400 acres at Kancha Gachibowli earlier this year. Learning from that, officials are now targeting smaller, high-value plots to attract serious investors, sources said.

The transaction advisor will be finalised by mid-Aug, setting the stage for one of the biggest land auctions in the state’s recent history.

The Raidurg parcels, close to Hyderabad’s tech corridor, are expected to be hotly contested. One 7.67-acre plot carries an upset price of Rs 50 crore per acre (market value is Rs 71 crore), while an 11-acre parcel is priced at Rs 44 crore per acre (market value is Rs 63 crore). The govt expects bidding to push prices beyond Rs 100 crore per acre.

Two smaller Raidurg plots are expected to fetch Rs 2.16 lakh per sq y, well above their Rs 1.55 lakh upset price, thanks to their proximity to metro access and IT hubs, and institutional zones. The area is home to global capability centres and top tech firms.

Meanwhile, Osman Nagar, located near Kokapet and Mokila, is emerging as a new growth zone. With fewer land-use restrictions due to its proximity to the GO 111 conservation zone, it’s drawing developer interest. TGIIC has identified 13 parcels here, priced at Rs 16 crore per acre (market value Rs 24 crore). Officials believe competitive bidding could push prices up to Rs 30 crore per acre.

The largest plot in Osman Nagar is 17 acres, with others ranging down to just one acre.