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The Withdrawal of GO-111: Implications for Real Estate Business in Hyderabad

Posted by vbvr projects on May 20, 2023

The recent decision by the Telangana Cabinet to withdraw GO No. 111 has sparked significant interest, especially within the real estate industry. This 27-year-old government order was initially introduced to protect the two vital water bodies, Himayatsagar and Gandipet, which served as key drinking water sources for the state capital, Hyderabad. The withdrawal of GO-111 opens up approximately 1.32 lakh acres of land in 84 villages for real estate development, signaling a shift in policy and offering new opportunities for growth in the sector.

Understanding GO-111:

GO-111, issued in 1996, followed the precautionary principle and aimed to safeguard the reservoirs and drinking water requirements of Hyderabad. Unfortunately, despite the government’s efforts to protect these lakes, rapid urbanization and encroachment of Full Tank Level (FTL) areas and catchment areas have led to the deterioration of these precious water sources. To address these concerns, the government of Andhra Pradesh declared a 10 km peripheral area within the catchment area of Osmansagar and Himayatsagar lakes as a “No Development Zone” to maintain a green belt and prevent pollution in the drinking water lakes.

Objectives and Restrictions of GO-111:

The main objective of GO-111 was to protect the Osmansagar and Himayatsagar lakes, which are crucial drinking water sources for Hyderabad, particularly the Old City. The order prohibited the establishment of industries, major hotels, residential colonies, and other pollution-generating activities within the catchment area of the two lakes within 10 km from the FTL. However, existing residential colonies in the designated residential use zone were permitted.

GO-111 also provided guidelines for the Master Plan Land Use Allocation, emphasizing that 90% of the overall area should be classified as Conservation Use and Recreation Use. This classification allowed for activities such as agriculture, farming, and gardening. To prevent acidification of the lakes, no industries were allowed within 10 km of both upstream and downstream of the lakes.

Implications for Real Estate Business:

The withdrawal of GO-111 by the Telangana Cabinet brings about significant implications for the real estate business in Hyderabad. The decision to revoke the order and open up 1.32 lakh acres of land for real estate development presents a tremendous opportunity for the sector. Previously restricted areas are now accessible for residential, commercial, and mixed-use projects, allowing developers to cater to the growing demand for housing and infrastructure development in the city.

The withdrawal of GO-111 signifies a shift in focus from preserving water bodies to striking a balance between environmental concerns and the need for economic growth. By aligning with the Hyderabad Metropolitan Development Authority (HMDA) rules, the government aims to regulate construction permissions in the newly available areas. This decision is expected to attract developers, investors, and homebuyers, injecting new life into the real estate market and stimulating economic activity.

However, it is essential to approach this newfound opportunity with caution. The concerns raised by environmentalists regarding potential pollution of water bodies and their surroundings due to increased construction activities should not be disregarded. It is crucial for stakeholders to adhere strictly to environmental regulations and sustainable practices to ensure responsible and balanced development.


The withdrawal of GO-111 in Hyderabad marks a significant turning point for the real estate business. The decision opens up vast areas of land for development and presents new opportunities for growth in the sector. While this move aims to balance economic growth with environmental considerations, it is crucial to approach development responsibly and sustainably. By adhering to regulations, promoting green practices, and addressing the main issues affecting water inflows into the lakes, Hyderabad can achieve a harmonious coexistence between urban expansion and environmental preservation.

If you are seeking real estate investment opportunities in the vicinity of Hyderabad, don’t hesitate to reach out to our real estate expert for a consultation without any obligations.

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