Major trade and industry associations in Telangana have sounded an alarm over recent regulatory moves by the state government. They warn that sudden and unilateral policy changes pose a significant threat to Telangana's celebrated industrial growth narrative and its reputation for stability.
Core Issues: Land, Power, and Energy Policies
The concerns center on three critical areas: the implementation of GO 27 under the Hyderabad Industrial Lands Transformation Policy (HILTP), abrupt changes in power tariff rules, and persistent delays in granting clearances for renewable energy projects. Nearly a dozen influential bodies, including the Federation of Telangana Chambers of Commerce and Industry (FTCCI), Telangana Industrialists Federation (TIF), and Telangana Iron and Steel Manufacturers Association (TISMA), have united to voice these issues. Together, they represent the interests of over 50,000 manufacturing and service units across the state.
Uncertainty from GO 27 and Relocation Risks
Regarding HILTP, industry leaders expressed deep anxiety about the lack of a clear roadmap for relocation support and compensation. FTCCI President R Ravi Kumar stated that sudden policy orders create serious uncertainty, which could freeze existing expansion plans and divert future investments to neighboring states. He emphasized that industries set up under previously approved master plans should not face retrospective penalties. "Most units within the ORR are pollution-controlled, compliant, and regularly audited," Kumar noted, arguing they should not be branded as environmental liabilities.
He further warned that ambiguity in GO 27 could lead to selective enforcement, eroding investor trust. The demand is for a comprehensive industrial shifting policy to be crafted only after thorough consultations with industry and labor stakeholders.
Power Tariff Shock and Stalled Green Energy
The industry groups also highlighted a severe power cost shock following the unblocking of Lead kVArh billing, which has drastically increased electricity bills for commercial and industrial consumers. They stressed the need for a phased transition and called for an expert committee to evaluate grid requirements and develop a sensible roadmap.
Furthermore, despite the announcement of the Clean and Green Energy Policy in January 2025, investments in renewable energy are stalled due to delays in issuing No-Objection Certificates (NOCs). The associations have urged the restoration of meaningful Time-of-Day (ToD) concessions, arguing that without real tariff benefits, such billing becomes a cost burden rather than an effective tool for managing demand.
MSMEs Face Existential Threat
TIF President K Sudheer Reddy underscored the disproportionate impact on Micro, Small, and Medium Enterprises (MSMEs). He argued that relocating a functioning unit is commercially unviable and places immense financial strain on businesses. "Large corporations may absorb the shock, but MSMEs will not survive relocation," Reddy said. He predicted that the costs of shifting, downtime, and re-approvals would lead to silent closures, breaking critical supply chains and ancillary ecosystems that support larger industries.
The collective appeal from Telangana's industrial sector is clear: the state government must engage in structured dialogue and reconsider these pressing issues to prevent damaging the hard-earned ease of doing business environment that has been a cornerstone of the state's economic success.
