The much-anticipated Malakpet IT Tower project in Hyderabad faces significant delays due to bureaucratic red tape, land acquisition issues, and financial hurdles. Initially expected to boost local employment and decentralize the city’s IT sector, the project now faces an uncertain future as construction remains stalled.
The Malakpet IT Tower project in Hyderabad, initially envisioned as a hub for promoting information technology in the eastern part of the city, has now fallen into uncertainty. Launched with much fanfare, the project was seen as a strategic step to decongest the traditional IT hubs in the western corridors of Hyderabad like Hitec City and Gachibowli.
The idea was to decentralize IT development and bring more job opportunities to areas closer to the Old City. However, the project has encountered several roadblocks that have delayed its progress, causing concern among stakeholders.
When Chief Minister A Revanth Reddy was asked whether the Musi rejuvenation project would have an impact on the IT tower project in Malakpet, he replied saying it had nothing to do with the Musi project.
It has been over a year since the foundation was laid for construction of an IT tower in Malakpet to provide employment opportunities in the IT and ITES companies. However, the project is yet to take off as the government has to sign agreements with the bidder for commencing the works.
Former IT Minister KT Rama Rao accompanied by Hyderabad MP and AIMIM chief Asaduddin Owaisi had laid the foundation stone for the IT Tower in Malakpet on October 2 last. The estimated cost was Rs. 700 crore for the state-of-the-Art IT Tower coming up close to PVR Mall.
It was announced that construction of the IT tower would aid in providing nearly 50,000 jobs. The tower will be coming up in 11 acres with built-up space in 15 lakh sft space.
Background of the Malakpet IT Tower
The proposal for the Malakpet IT Tower was part of the BRS government’s broader vision of creating IT infrastructure across Hyderabad, with a particular focus on underdeveloped areas. The IT Tower was to provide office space and amenities for start-ups, mid-sized companies, and multinational corporations looking to establish or expand their operations in Hyderabad.
Malakpet, located near the Old City, was chosen due to its strategic location and connectivity to key city areas, including Rajiv Gandhi International Airport, ensuring accessibility for tech professionals.
The project was expected to boost local employment opportunities, reduce the pressure on Hyderabad’s western IT hubs, and promote balanced urban development. Additionally, the IT Tower was designed to attract companies from various sectors, including software development, IT-enabled services (ITES), and fintech, further enhancing the city’s reputation as a global IT hub.
After laying the foundation stone, KT Rama Rao had said that the people would forget Malakpet TV tower as a landmark structure and would recognize the new multi-storeyed IT Tower as a new landmark in the area. He had also assured to complete the works within 36 months.
Telangana Industrial Infrastructure Corporation was entrusted with the project task. When TGIIC was contacted over the delay, a senior official said “Agreements have to be signed with the bidder for commencing the works. Hopefully, it would be done in November,”
The official further said soon after the foundation was laid, Assembly elections notification was announced. This was followed with Lok Sabha elections and things got delayed, the official said.
Last week, during a press meet in Secretariat, when Chief Minister A Revanth Reddy was asked whether the Musi rejuvenation project would have an impact on the IT tower project in Malakpet, he replied saying it had nothing to do with the Musi project.
“It will be addressed in the IT policy. If not IT Minister D Sridhar Babu will give a detailed explanation whenever possible,” Revanth Reddy had said.
Interestingly, the Hyderabad MP had praised the BRS government and former IT Minister for laying the IT tower’s foundation in Malakpet. He had said that the project would usher in a new development in the old city and provide ample employment opportunities for youth in the old city.
But even after a year with the project failing to take off, the AIMIM has not raised the issue with the Congress government.
Current Status and Delays
Despite the initial enthusiasm surrounding the project, the Malakpet IT Tower has not seen the expected progress. One of the primary reasons for the delay is the bureaucratic red tape that has slowed down decision-making processes. Land acquisition issues, along with prolonged clearances from various government departments, have created significant hurdles. Disputes over land ownership and compensation for affected parties have added further complexities.
Moreover, there have been financial challenges. Funding for the project has faced delays, leading to a standstill in construction activities. The initial budget allocations have proven insufficient due to rising costs of construction materials and labor. As a result, the government has had to re-evaluate the financial feasibility of the project, which has contributed to further delays.
Another significant factor contributing to the project’s stagnation is the impact of the COVID-19 pandemic. The pandemic severely disrupted construction activities across the country, and the Malakpet IT Tower was no exception. With labor shortages, supply chain disruptions, and shifting government priorities during the crisis, the project lost momentum during 2020 and 2021.
Challenges Ahead
The future of the Malakpet IT Tower project remains uncertain. One of the key challenges is the need for greater coordination between various government agencies to resolve land and funding issues. A clearer roadmap with realistic timelines is required to bring the project back on track.
There is also growing frustration among local residents and businesses, who had high expectations for the economic opportunities the IT Tower would bring to the area. The delay in the project has dampened hopes for job creation and economic upliftment in Malakpet and its surrounding regions. The stagnation of this project has also raised concerns about the government’s ability to execute other similar infrastructure projects in Hyderabad’s less developed areas.
The Malakpet IT Tower project, once seen as a game-changer for the eastern part of Hyderabad, is currently in a state of limbo. While the idea behind the project is commendable, its execution has been marred by bureaucratic inefficiencies, financial hurdles, and unforeseen disruptions such as the pandemic. For the project to succeed, timely interventions by the government and improved collaboration between stakeholders are essential. Until then, Malakpet’s dream of becoming a new IT hub remains unfulfilled. #hydkhabar
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