Hyderabad Metropolitan Development Authority introduces revamped land pooling policy to boost infrastructure and control illegal constructions
Hyderabad is set to witness a significant transformation in urban planning as the Hyderabad Metropolitan Development Authority prepares to implement a revamped Land Pooling Act. In a move aimed at strengthening infrastructure, enforcing land use transparency, and curbing illegal constructions, HMDA has issued a notification to appoint a consultant for finalizing the new framework.
According to sources familiar with the matter, the revised policy will bring sweeping changes to how urban layouts are designed and executed. One of the key highlights of the new land pooling mechanism is that the government will retain 40 percent of pooled land in any given development zone. This retained portion will be used to develop public infrastructure and bolster land banks for the HMDA, Greater Hyderabad Municipal Corporation, and other civic bodies across the region. Officials expect this to be a long-term strategic move to support future expansion, public services, and urban upgrades. The policy is also designed to plug gaps in the current land pooling model, where only 10 percent of land was reserved for public amenities. That limited allocation frequently led to encroachments and unauthorized usage of public land, defeating the purpose of planned development. With the new model, authorities intend to strictly enforce the reservation and protection of space meant for schools, healthcare facilities, power substations, parks, and other essential civic uses.
In addition to improving planning discipline, the revised Act will integrate the Local Area Development Plan, or LADP, into the process. This integration is expected to smoothen the layout planning for lands owned by farmers, government allottees, and private entities. It ensures that all stakeholders, especially individual landowners participating in pooling, benefit from improved development while the government retains land necessary for essential infrastructure. Once implemented, the new layouts under this policy will be equipped with complete infrastructure. This includes properly planned road networks, underground drainage systems, drinking water supply lines, and electricity infrastructure. In earlier iterations of land pooling, many layouts lacked cohesive planning, leading to fragmented development and ad hoc utility provision. By mandating comprehensive infrastructure in the portion retained by the government, HMDA aims to raise the standard of urban living in new growth zones.
Experts say that a major motivation behind this revision is the sharp increase in unauthorized constructions and irregular land usage in rapidly expanding parts of Hyderabad. With unchecked real estate growth and inadequate planning oversight, several urban pockets have seen haphazard development, putting pressure on civic amenities and leading to legal disputes. The new land pooling policy aims to curb this by ensuring that urban expansion is rooted in clear rules, accountable land use, and shared responsibilities between government and landowners. Another long-term benefit of the policy is the strengthening of the state’s land bank, especially in prime and peri-urban locations. With a robust land inventory, authorities will have greater control over directing growth corridors, launching public housing projects, and supporting industrial and institutional development. It also allows them to keep up with the growing demand for land as Hyderabad continues to attract investments in IT, pharma, aerospace, and other sectors.
In recent years, the absence of a reliable and transparent mechanism to manage pooled land has often led to conflicts between local landowners and civic bodies. The revised law seeks to address these concerns by offering landowners clarity on how their land will be utilized, what they will receive in return, and when the infrastructure will be completed. Under the proposed structure, the 60 percent of land returned to owners will come with guaranteed access to roads, water, drainage, and power, making it instantly usable for commercial or residential development. Furthermore, the policy aims to replace the piecemeal development seen in the past with a more holistic approach. This includes placing emphasis on public health infrastructure, educational institutions, and environmental sustainability. While the older land pooling policy had limited provisions for such facilities, the new model seeks to build entire neighborhoods around essential services rather than cramming them in as an afterthought.
City planners believe that if implemented well, the new framework could serve as a model for other metros grappling with similar issues of sprawl, land scarcity, and civic degradation. However, success will largely depend on execution—ensuring that consultants, contractors, and civic agencies align with the vision of long-term, inclusive, and efficient urban development. With the notification for hiring consultants already issued, the final policy is expected to take shape over the next few months. The HMDA has stated its intention to involve various stakeholders, including urban planners, legal experts, local government bodies, and representatives of landowners, to ensure a smooth rollout.
Hyderabad’s rapid growth has often been a double-edged sword—while it brings economic opportunity, it also strains the city’s infrastructure and governance systems. With this revamped land pooling act, the HMDA appears to be taking a significant step toward ensuring that growth is not only inevitable but also sustainable.
