Telangana Government Notifies Transfer of Gram Panchayat Powers for Industrial Park Maintenance

The Government of Telangana has issued two significant notifications, G.O. Ms. No. 24 and G.O. Ms. No. 25, both dated April 30, 2025, concerning the administration of Panchayat Raj. These notifications formalize the transfer of specific powers and functions from several Gram Panchayats to the Telangana Industrial Infrastructure Corporation Limited (TIIIC). The move, published in the Telangana Gazette as Part-VII Extraordinary, came into force upon its publication, establishing TIIIC as a Local Authority for designated industrial areas.

These notifications were issued in exercise of the powers conferred under clause (i) of section 140 read with section 294 of the Telangana Panchayat Raj Act, 2018 (Telangana Act No.5 of 2018). The primary reason for this legislative action is to ensure the systematic and improved maintenance of Industrial Parks established by TIIIC in areas that currently fall under the jurisdiction of Gram Panchayats. The transferred powers encompass a broad range of responsibilities, including provisions relating to Taxation and Finance (Sections 64-74), Public Safety, Convenience, and Health (Sections 75-118), General, Miscellaneous, and Supplemental provisions for Gram Panchayats (Sections 119-140), other Miscellaneous provisions (Sections 261-285), and provisions concerning Rules, Bye-Laws, and penalties (Sections 286-297). The affected areas, detailed in Annexure-II of the notifications, include industrial parks and villages across Sangareddy, Medak, and Siddipet districts. A crucial condition of this transfer is a revenue-sharing mechanism: for newly formed Industrial Area Local Authority areas without existing industries, revenue will be shared in a 65:35 ratio between TIIIC and the concerned Gram Panchayats, while for other areas, the ratio will be 50:50.

The legislative intent behind these notifications is to streamline the administration and development of industrial zones within the state. The earlier legal position saw Gram Panchayats exercising these powers and functions within their respective geographical limits. However, the rapid industrialization and the establishment of specialized industrial parks necessitated a more focused and expert administrative body. The notifications address the statutory gaps and limitations that traditional Gram Panchayat structures might face in managing complex industrial infrastructure and services. By transferring these responsibilities to TIIIC, the government aims to ensure specialized management, better resource allocation, and efficient service delivery within these industrial enclaves. While these notifications do not introduce direct amendments to the Telangana Panchayat Raj Act, 2018, they establish a new operational framework by reallocating existing statutory powers. This creates new obligations for TIIIC to perform these functions and new rights for Gram Panchayats to receive a share of the revenue generated from industrial activities within their former jurisdiction. The legislation provided: “...the Government hereby transfer the powers and functions of certain Gram Panchayats to the extent mentioned in Annexure-II appended to this notification as Local Authority under various sections as specified in Annexure-I enclosed to this notification to the control of Telangana Industrial Infrastructure Corporation Limited for systematic and better maintenance of Industrial Parks established by them in the areas specified in Annexure-II to this notification which are falling under jurisdiction of the Grama Panchayats...” This transfer is expected to lead to more effective governance and maintenance of industrial areas, fostering a conducive environment for industrial growth while ensuring a share of the economic benefits accrues to the local Gram Panchayats.

Keywords: Telangana, Panchayat Raj, Industrial Parks, Gram Panchayats, TIIIC, Local Authority, powers transfer, revenue sharing, industrial development, infrastructure maintenance Geo Tags: Country: India, State: Telangana District: Sangareddy, Medak, Siddipet