HMT land bank may be monetised as AI clusters

New Delhi: India is preparing a plan to monetise the land bank available with ailing public sector undertaking (PSU) HMT Ltd for setting up artificial intelligence clusters.

Officials aware of the plan said HMT has the second largest land bank in the country after the Indian Railways. The PSU once held close to 1,800 acres of land, of which around 1,100 acres is remaining across Hyderabad (Telangana), Bengaluru (Karnataka), Pinjore (Haryana) and Kalamassery (Kerala).

These land banks have been 'gifted' by the respective state governments to HMT over the years in anticipation that industries would develop. But most of this land is either vacant or encroached, causing much dispute with the states that want it back.


"Investment plans of around ₹10,000 crore with public-private partnerships are also being drawn up for the AI clusters," a senior official told ET.

In its 72nd annual report, HMT said it is pursuing utilisation of suitable open lands for solar power generation and other avenues. "It is planned that the company will lease out the major portions of the land and buildings to a third party to generate lease rentals for the company and accordingly, it is classified as investment properties," HMT had said.

In November 2024, the Centre tasked Niti Aayog member, Vijay Kumar Saraswat to recommend the way forward for revival of HMT. In September last year, an inter-ministerial panel reviewed the working of this PSU. It discussed strengthening HMT's operations and explored new order prospects with Indian Railways.

Saraswat is said to have submitted his over 1,000-page report in December 2025, which calls for sweeping interventions and revivals. The Centre is now deliberating on this report on the way ahead for HMT. The PSU also had significant worker and statutory dues, which it hopes to clear with the revival plan being set in motion.