The Telangana government is actively pursuing the resumption of 891 acres of Indian Drug and Pharmaceuticals Land (IDPL) in Balanagar, valued at thousands of crores. However, multiple government departments are vying for portions of this prime real estate, requesting the state to allocate land for their offices.
Land Allocation Decisions
The state has already allocated 30 acres, including 20 acres to the newly established Cyberabad Municipal Corporation (CMC), and 5 acres each to the Deputy Police Commissioner of Balanagar office and the Registration and Stamps and Industries Department. The Medchal-Malkajgiri district collector has sent letters to the Telangana State Industrial Infrastructure Corporation (TGIIC) formalizing these allocations based on government recommendations.
However, the land transfers are contingent upon the High Court lifting the current status quo order, which was issued after IDPL approached the court recently.
Protecting the Land from Encroachment
Official sources indicate that TGIIC plans to fence the entire 891-acre parcel once court permission is granted, aiming to prevent further encroachment. Preliminary assessments by TGIIC and revenue authorities estimate that 50 to 60 acres have been encroached upon by private individuals, with residential colonies established on the land. Notably, a police complaint filed in late January against 11 individuals for encroachment cited only 14 acres as encroached—a figure that may understate the actual scale.
“We have finalized an agency to fence the boundary of the IDPL land. As the High Court directed status quo, fencing will be done after court clearance,” a senior TGIIC official stated.
Background of IDPL
Officials dismiss claims of ongoing manufacturing at the IDPL site, calling them “far from the truth.” The history of the land dates back to 1967 when the state government originally allocated the property. A portion was later given to the National Institute of Pharmaceutical Education and Research (NIPER). The pharmaceutical company itself became financially distressed in 1992 and was referred to the Board for Industrial and Finance Reconstruction (BIFR) in 2003 for winding up. Subsequently, the case moved to the National Company Law Tribunal (NCLT), and IDPL did not appeal. Meanwhile, the then-Rangareddy (now Medchal-Malkajgiri) collector resumed the remaining land in 2008 and handed it over to TGIIC.
Current Status of Operations
Interestingly, the IDPL website states that the company, which once manufactured 47 bulk synthetic drugs—including vitamins, sulfa drugs, chloroquine, methyldopa, and analgesics—from basic stages, ceased plant operations in 1996 (for bulk drugs) and 2003 (for formulations). Only the effluent treatment plant (ETP) continues to operate, treating effluents from nearby industrial units.
The government’s efforts to reclaim and redevelop this valuable land are now on hold pending the High Court’s decision, highlighting the complex legal and administrative challenges involved.
