The decision to grant the land at cost of Rs 300 crore had been taken in August 2008. However, the project was not progressing and the company was not in agreement with the clauses of the memorandum of understanding. Hence, the SPV company formation process was not completed.
Officials said the land is also needed by City and Industrial Development Corporation (Cidco) for several important projects.
In another decision, the cabinet also approved a proposal to regularise the transfer of gift land in Marathwada region.
Farmers have acquired the inam (gift) land from the Nizam period, but the acquisition was not legal. The government has decided to relax the conditions for the transfer of these lands and regularise them.