BJP leader warns Telangana’s land auctions could push state towards ‘asset bankruptcy’

Hyderabad: Senior BJP leader Gudur Narayana Reddy accused the Congress government of pushing Telangana towards “asset bankruptcy” through the continued auction of valuable public lands. He warned that Telangana’s land auctions could weaken the State’s financial credibility and restrict its future borrowing capacity.

In a statement on Saturday, November 7, he alleged that the government was selling permanent public assets to meet immediate revenue requirements. He said the policy could affect future spending on welfare schemes, hospitals, universities, industrial development and essential infrastructure.

Narayana Reddy criticised the government’s plans to auction additional lands through the Hyderabad Metropolitan Development Authority (HMDA) and Telangana Industrial Infrastructure Corporation (TGIIC).

He accused Chief Minister A. Revanth Reddy’s administration of prioritising short-term financial relief over long-term fiscal stability.

“Congress is leading Telangana towards asset bankruptcy. A government that continuously sells its most valuable assets without creating new sources of income is weakening the financial foundation of the State. What will remain for future generations?” he asked.

Telangana’s land auctions raise borrowing concerns, BJP leader says

Narayana Reddy argued that repeated land sales could affect the government’s ability to secure institutional financing for future development programmes. He questioned whether lenders would remain confident if the State continued disposing of valuable assets without developing alternative revenue sources.

“Today, the government is selling land to raise money. Tomorrow, when it needs thousands of crores to implement welfare schemes, build hospitals, establish universities or develop infrastructure, what financial strength will it demonstrate to lenders? Why should financial institutions have confidence in a government that has systematically depleted its valuable assets?” he questioned.

The BJP leader said government borrowing depended on revenue-generating capacity, fiscal credibility and repayment commitments. He acknowledged that the Constitution permitted States to borrow against their Consolidated Funds.

However, he maintained that a strong public asset base remained important for financial stability and infrastructure projects requiring asset-backed financing. Additionally, he raised concerns about sovereign and State government guarantees involving repayment commitments for borrowing entities.

“A government guarantee is a serious financial commitment, not a substitute for sound finances. If the State continues disposing of valuable assets while increasing its financial obligations, questions will inevitably arise about its capacity to honour future commitments,” he said.

He warned that State-owned corporations and infrastructure agencies could face financing difficulties if their assets and repayment capacity weakened.

BJP criticises revenue mobilisation through land sales

Narayana Reddy accused the Cabinet Sub-Committee on Revenue and Resource Mobilisation of adopting a short-term approach to raising funds. He said the committee had prioritised auction-ready layouts and valuable government parcels in Medchal, Rangareddy and the Hyderabad metropolitan region.

According to him, the government was converting permanent public wealth into temporary cash without creating equivalent productive assets.

“This is not resource mobilisation. It is asset stripping disguised as fiscal prudence. Land is a finite resource. Once sold, it is gone forever. The government is converting permanent public wealth into temporary cash without creating equivalent productive assets,” he said.

He also accused successive BRS and Congress administrations of treating government land as a convenient revenue source rather than a strategic asset. Narayana Reddy cited CAG-related figures to support his criticism of Telangana’s land auctions.

He said Telangana recorded Rs. 16,478 crore in receipts from land, property and miscellaneous sources during 2023-24. According to the figures he cited, these receipts accounted for approximately 69% of the State’s non-tax revenue.

He also said the erstwhile Telangana State Industrial Infrastructure Corporation (TSIIC) held 53,473.76 acres as of March 31, 2022. Citing CAG audit findings, he stated that the corporation made 2,355 allotments covering approximately 4,050 acres between 2014-15 and 2021-22.

Narayana Reddy cites Raidurg and Kokapet auction figures

The BJP leader alleged that the Congress government had accelerated the land monetisation policy followed by the previous BRS administration. He said the BRS government auctioned approximately 31 acres in the Raidurg-Knowledge City corridor for nearly Rs. 730 crore.

Meanwhile, he noted that Kokapet Neopolis land prices reached Rs. 100.75 crore per acre in August 2023. He claimed that nearly 40 acres in Raidurg-Knowledge City had been auctioned since January 2024 for approximately Rs. 7,000 crore.

According to him, these transactions averaged around Rs. 179 crore per acre. He also cited auction prices of Rs. 177 crore per acre in October 2025 and Rs. 237 crore in May 2026. Further, he referred to prices of Rs. 264 crore and Rs. 269 crore per acre in August 2026.

Narayana Reddy said HMDA’s three-phase Kokapet Neopolis auctions generated approximately Rs. 3,708 crore from 27 acres during 2025. He placed the average price in those auctions at Rs. 137 crore per acre.

Additionally, he said HMDA had proposed auctioning another 114 land parcels with an estimated revenue target of Rs. 2,000 crore. He alleged that the Cabinet Sub-Committee had sought further proposals for phased land sales.

“The BRS government began large-scale monetisation of valuable lands. Congress is continuing and intensifying it at even higher prices. Both governments have treated public assets as disposable resources,” he remarked.

Narayana Reddy warned that the continued sale of strategically located public lands could limit opportunities for future industrial expansion. He said TGIIC reportedly had 5,730 acres available for industrial allotment as of September 2025.

However, he claimed that valuable government lands around Hyderabad were increasingly passing into private ownership through auctions. He questioned where future factories, IT campuses, manufacturing units and public institutions would be established if suitable government land became scarce.

“If suitable government land is exhausted, where will future industries establish factories, IT campuses and manufacturing units? Where will the government build hospitals, educational institutions and public offices?” he asked.

Instead, Narayana Reddy urged the government to prioritise industrial parks, manufacturing facilities and faster project approvals. He also recommended land pooling and incentives linked to employment generation.

According to him, industrial investment could create employment, develop skills, strengthen supply chains and generate recurring tax revenue. By contrast, he argued that government land auctions provided only one-time revenue.

“Industries create jobs, develop skills, strengthen supply chains and generate recurring tax revenue. Land auctions generate money only once. The government must distinguish between sustainable revenue generation and the permanent disposal of public wealth,” he said.

BJP demands review of Telangana’s land auctions

Narayana Reddy demanded an immediate review of the Congress government’s land monetisation policy. He also called for a comprehensive public inventory of the State’s remaining government lands.

Furthermore, he urged the administration to reserve strategically important parcels for industrial development, public institutions and other essential purposes. He warned that continued auctions could leave future governments with greater financial commitments and fewer public assets.

According to him, reduced fiscal flexibility could affect future development programmes and the State’s capacity to meet financial obligations.

“The real danger is not merely that Telangana may run out of valuable land. It is that future governments may inherit mounting financial obligations, reduced fiscal flexibility and fewer public assets to support development. Congress govt must explain whether it is building Telangana’s future or auctioning it away,” he said.