How Much Is Biodiversity Worth in a ₹50,000 Crore Tech Park?

16 April 2025

Introduction

Over the past three decades, India’s economic landscape has transformed dramatically. With an average annual GDP growth of 6.34 percent between 2006 and 2025, the nation has steadily climbed the ranks to become the world’s fifth‑largest economy by nominal GDP. This surge has been powered by a burgeoning services sector especially information technology hubs in cities like Bengaluru and Hyderabad alongside manufacturing and infrastructure investments. Yet, the rapid pace of urbanization has placed immense pressure on natural ecosystems, provoking urgent questions about the sustainability of growth models that prioritize short‑term revenue over long‑term ecological health.

Hyderabad’s Kancha Gachibowli controversy exemplifies this dilemma. In February 2025, the Telangana government’s decision to auction 400 acres of urban forest for IT park development ignited student protests, judicial interventions, and nationwide debates on land rights, environmental law, and the very meaning of “forest”. As India confronts recent environmental crises from Delhi’s hazardous smog episodes to Kochi’s toxic landfill fire there is an urgent need to revisit historical movements that shaped the country’s environmental law and to chart a path toward inclusive growth, where economic progress and ecological conservation reinforce, rather than undermine, each other.

Economic Ambitions Meet Ecological Imperatives

India’s macroeconomic performance over the last quarter‑century has been remarkable. Real GDP growth accelerated from an average of 3.4 percent per annum in the 1950–1979 period to nearly 6–8 percent in the post‑liberalization era, with the economy expanding by 7.58 percent in 2023 alone. This growth has been unevenly distributed across regions, metropolitan centres like Mumbai, Delhi, Bengaluru, and Hyderabad have emerged as engines of service‑sector expansion, drawing talent and investment. In Hyderabad, the Gachibowli–HITEC City corridor has become synonymous with multinational tech campuses, luxury residential enclaves, and high‑speed infrastructure, epitomizing India’s urban transformation.

State governments, eager to capitalize on this momentum, have increasingly turned to land monetization leasing or auctioning public lands to fund highways, metros, and smart‑city projects. In Telangana, the Telangana Industrial Infrastructure Corporation (TGIIC) projected that auctioning 400 acres of green cover in Kancha Gachibowli could generate ₹50,000 crore and create 500,000 direct and indirect jobs, underscoring the perceived urgency of converting ecological assets into fiscal windfalls.

Yet urban forests provide indispensable ecosystem services that often go unpriced in market transactions. Kancha Gachibowli, one of Hyderabad’s last contiguous green spaces, regulates local temperatures by 2–3 °C through evapotranspiration, filters particulate pollutants from vehicular and industrial emissions, and recharges groundwater tables during monsoons. Moreover, preliminary surveys identify over 455 species of flora and fauna including schedule‑I species such as the Indian pangolin and slender loris underscoring its role as a carbon sink and biodiversity refuge. Loss of such urban green lungs exacerbates heat‑island effects, diminishes air quality, and undermines public health, potentially offsetting the very economic gains that development seeks to achieve.

The Kancha Gachibowli Flashpoint

The 2,300‑acre parcel encompassing Kancha Gachibowli was originally allotted to the University of Hyderabad upon its establishment in 1974. Over subsequent decades, the state government excised portions for public utilities a bus depot, telephone exchange, IIIT campus, sports stadium, and shooting range while retaining 400 acres of dense woodland adjacent to the university east campus. A brief 2003 handover to a private sports firm, reversed in 2006 for non‑utilization, sparked legal battles culminating in Supreme Court affirmations that the state government holds sole title to the land, albeit without formal forest notification.

In February 2025, TGIIC announced plans to auction the 400 acres for “state‑of‑the‑art IT parks,” projecting ₹50,000 crore in upfront revenue and 500,000 jobs over a decade. The proposed layout purported to preserve iconic rock formations such as the “Mushroom Rock” as integrated green zones within the development. Proponents argued that this conversion was essential to sustain Hyderabad’s competitive edge amid global tech hubs and to finance vital infrastructure expansions.

The government’s deployment of 50 earth‑moving machines during a long holiday weekend on March 30, 2025, to begin tree‑felling provoked immediate backlash. University students and local activists decried “green murder,” staging sit‑ins, human chains, and demonstrations that led to 53 detentions, 2 arrests, and at least 20 injuries in police lathi‑charges. Two Public Interest Litigations filed in the Telangana High Court resulted in an interim stay on all development activities.

On April 3, 2025, the Supreme Court took Suo motu cognizance, staying further tree‑felling and directing the High Court registrar to inspect the site and submit a report by 3:30 pm the same day. The bench of Justices B.R. Gavai and A.G. Masih questioned the “compelling urgency” cited by the government and noted that the area harboured eight types of Schedule‑I fauna. A Central Empowered Committee was ordered to conduct an on‑site evaluation by April 16. Meanwhile, the state constituted a ministerial committee to engage University of Hyderabad, civil society, and environmental experts in formulating a “way forward.”

Legal Status: “Forest” by Ecological, Not Just Formal, Criteria

Under the Forest (Conservation) Act, 1980, Section 2 prohibits any “forest land” from being diverted for non‑forest purposes without prior approval of the Central Government. In T.N. Godavarman Thirumulpad v. Union of India (1996), the Supreme Court held that the Act’s scope extends to all lands exhibiting substantial tree cover regardless of whether they are formally notified as “reserved” or “protected” forests. By anchoring the definition of “forest land” in ecological characteristics (canopy density, biodiversity, hydrological function) rather than administrative labels, the Court effectively created a class of “deemed forests” that cannot be altered without MoEFCC clearance.

This expansive interpretation closed a critical loophole like state governments could no longer lease or auction green spaces simply because they lacked a gazette notification. Any proposed land‑use change be it IT parks, industrial zones, or infrastructure corridors must now undergo a rigorous Central clearance process, including mandatory Environmental Impact Assessments (EIAs) and stakeholder consultations. These safeguards ensure that ecological services carbon sequestration, air purification, groundwater recharge, and habitat protection are fully weighed before approval.

Activists argue that Telangana’s auction of Kancha Gachibowli’s 400 acres blatantly contravenes both the letter and spirit of Godavarman. Though the state claims administrative title, the forest’s dense canopy, Schedule I fauna, and critical ecosystem services incontrovertibly qualify it as “forest land” under the FCA. Any unilateral auction without Central clearance or comprehensive EIA is therefore vulnerable to legal challenge and likely to be struck down by the judiciary.

Lessons from India’s Environmental Movements

The Chipko Movement

In 1973, in the Chamoli district of Uttarakhand, rural villagers predominantly women embraced trees to prevent commercial loggers from felling them, coining the term “Chipko” (to hug). Led by figures like Sunderlal Bahuguna and Chandi Prasad Bhatt, the movement highlighted local dependence on forests for fuelwood, fodder, and water. Its success in securing a 10‑year ban on green felling in the Himalayan foothills demonstrated the power of nonviolent, community‑driven activism in shaping national forestry policy.

The Appiko Movement

Inspired by Chipko, the Appiko Andolan emerged in September 1983 when villagers in Uttara Kannada, Karnataka, hugged trees to resist state‑led logging in the Kalase forest. Local leader Panduranga Hegde galvanized support across communities, leading to a moratorium on green felling and stricter forest management policies in the Western Ghats a UNESCO biodiversity hotspot.

Godavarman – Judicial Reinforcement of Ecological Realities

The 1996 Godavarman judgment, born from a writ petition by T.N. Godavarman Thirumulpad, cemented the principle that ecological characteristics, not mere administrative labels, determine forest status. The Supreme Court’s expansive interpretation of “forest land” has since served as a bulwark against unauthorized deforestation, mandating rigorous clearance processes for any land‑use change in areas with tree cover.

Recent Environmental Challenges (2022–2025)

New Delhi’s Recurrent Smog Crises

In December 2024, New Delhi’s Air Quality Index (AQI) persistently exceeded 400 (“severe”), triggering Stage IV restrictions under the Graded Response Action Plan banning diesel generators, halting construction, and enforcing a mask mandate for outdoor activities. Such episodes, driven by vehicular emissions, industrial pollutants, and crop‑residue burning in adjacent states, have forced school closures, hospital overcrowding, and a surge in respiratory illnesses, highlighting the health and economic toll of unchecked air pollution.

Kochi’s Brahmapuram Landfill Fire

On March 2, 2023, a fire erupted at Kochi’s Brahmapuram waste plant, sending toxic fumes across the city for 11 days. Over 200 firefighters battled the blaze, using 40,000 litres of water per second in deep excavation pits, yet the fire was only fully contained by March 13. Schools and colleges remained closed until March 15, and local courts likened the situation to a “gas chamber,” underscoring the perils of inadequate waste management.

Surface Ozone: The Invisible Killer

A 2025 study in Global Transitions revealed that ground‑level ozone pollution in India caused over 50,000 premature deaths in 2022, inflicting an economic burden of US $16.8 billion 1.5 times the government’s total health expenditure that year. Surface ozone, formed by photochemical reactions involving vehicular and industrial emissions, exacerbates respiratory and cardiovascular diseases, adding an often‑overlooked dimension to India’s air‑quality challenges.

Deforestation Trends and Carbon Impacts

According to Global Forest Watch, India lost 2.33 million hectares of tree cover between 2001 and 2023, a 6.0 percent decline since 2000, resulting in 1.20 Gt CO₂e of emissions. Drivers include agricultural expansion, mining, infrastructure projects, and urban sprawl trends that not only diminish biodiversity but also undermine climate mitigation efforts and local livelihoods dependent on forest resources.

Toward an Inclusive Growth Paradigm

Building on lessons from Kancha Gachibowli and historical movements, India must adopt a synergistic model of development that aligns economic objectives with environmental stewardship and social equity. Land‑use planning defined as the scientific regulation of land resources to achieve social, economic, and environmental goals can prevent conflicts between development and conservation. By zoning distinct areas for urban expansion, green belts, agriculture, and ecological reserves, planners can safeguard critical habitats while accommodating growth. Such frameworks, preserved in comprehensive master plans, enable authorities to anticipate infrastructure needs, manage sprawl, and maintain ecological corridors. The EIA Notification, 2006, mandates prior environmental clearance for 39 categories of projects including infrastructure and industrial developments through a decentralized process involving national and state appraisal bodies. However, amendments in 2022–2023 have raised concerns over dilution of public consultation and post‑facto clearances. Reinstating rigorous, transparent EIAs with publicly accessible scoping documents, draft reports, and stakeholder hearings is crucial to ensuring that environmental costs are fully internalized before project approvals.

Meaningful participation of local communities, academic experts, environmental NGOs, and urban residents must be institutionalized through advisory committees and public hearings. The Supreme Court’s direction to constitute a ministerial group for Kancha Gachibowli comprising government officials, University of Hyderabad representatives, civil society, and experts offers a template for deliberative governance. Such forums can co‑design land‑use plans, mediate conflicts, and foster shared ownership of development outcomes. Policymakers should consider reclassifying ecologically sensitive lands based on natural cover rather than revenue records alone, drawing on the Godavarman precedent. Financial incentives such as green bonds, payment for ecosystem services (PES), and tax rebates for urban forestry can encourage municipalities and private developers to integrate green infrastructure. Additionally, urban biodiversity laws and carbon credits for tree‑planting can monetize conservation benefits, aligning profit motives with ecological restoration.

Conclusion

The Kancha Gachibowli episode, set against the backdrop of India’s economic ascent and escalating environmental crises, underscores a pivotal truth: development and nature are not adversaries but partners in the quest for sustainable prosperity. From the tree‑hugging heroes of Chipko and Appiko to the courtroom victories of Godavarman, India’s environmental legacy offers a rich tapestry of civic courage and legal innovation. Yet, contemporary challenges from Delhi’s lethal smog to Kochi’s landfill fire demand that we translate these lessons into robust policy architectures.

An inclusive growth paradigm anchored in integrated land‑use planning, transparent EIAs, participatory governance, and incentive‑driven conservation can harmonize economic ambitions with ecological imperatives. As Hyderabad’s judiciary‑backed stay on Kancha Gachibowli’s deforestation demonstrates, a vigilant civil society and an empowered judiciary can check hasty state action. The task now is to institutionalize these checks within planning systems nationwide, ensuring that every hectare of forest, every breath of clean air, and every drop of groundwater is valued as an indispensable pillar of India’s future.