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The government is evaluating plans to monetise the extensive land holdings of HMT Ltd by repurposing them for artificial intelligence (AI) clusters, reflecting a strategy to unlock value from under-utilised public assets and support emerging technology ecosystems. HMT, which holds one of the country's largest PSU land banks with around 1,100 acres remaining across locations including Hyderabad, Bengaluru, Pinjore (Haryana) and Kalamassery (Kerala), may see its sites leveraged to attract technology investments. Officials said investment proposals totalling around INR 10,000 crore are being drafted, potentially under public-private partnership models for AI and related innovation clusters. The move aligns with broader efforts to revitalise HMT's operations, address legacy liabilities and accelerate land-driven economic activity while advancing India's AI infrastructure ambitions.
India is preparing to monetise the substantial land bank of HMT Ltd, a once-prominent public sector undertaking, by converting its unused and under-utilised sites into artificial intelligence (AI) clusters, government sources said. The initiative forms part of a wider strategy to leverage dormant state-owned assets to catalyse development in emerging technology sectors and support the nation's push towards advanced digital infrastructure. Advertisement
HMT, historically involved in manufacturing machine tools, possesses one of the largest land banks in the public sector, second only to the Indian Railways. It once held around 1,800 acres of land across multiple states, of which approximately 1,100 acres remain under its control. These parcels are located in key urban and peri-urban areas including Hyderabad, Bengaluru, Pinjore and Kalamassery, which have strong potential for technology and innovation-led development. Much of this land was transferred to HMT by state governments with the expectation that industrial growth would follow, but significant tracts remain vacant or encroached.
Officials familiar with the proposal said that investment plans worth roughly INR 10,000 crore are being designed for the development of AI clusters on the HMT land bank, potentially through public-private partnership arrangements. Such clusters would aim to attract technology firms, research institutes and start-ups working on artificial intelligence, machine learning and related digital technologies, bolstering India's eco-system for innovation.
The proposal comes amid deliberations on broader revival strategies for HMT, which has faced operational and financial challenges over recent years, including legacy worker and statutory dues. In late 2024, the Centre tasked a senior adviser to recommend pathways for revitalising the company, and an inter-ministerial panel has previously reviewed options to strengthen its functioning. A report submitted by the adviser in late 2025 is now under consideration and is understood to support land-based monetisation alongside other interventions.
By repurposing HMT's land assets for high-technology clusters, policymakers aim to address multiple objectives: unlock value from idle government land, facilitate infrastructure for cutting-edge sectors, and stimulate regional economic activity. If approved, the AI cluster plan could mark a major shift in how public sector land banks are utilised to support India's digital economy and technology ambitions.
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