AP Capital Development: Govt to acquire 30K acres of land

At a meeting convened by the Andhra Pradesh Chief Minister, a proposal to develop the new capital city in three phases was made. About 30,000 acres of land would be acquired in two separate zones for developing the new capital. The State government plans to acquire the required land through ‘land pooling’, as decided earlier. A similar policy would be adopted in acquiring land required for the remaining two phases. Land Pooling works on the principle of proportionate sharing of benefits accrued and would give the project a ‘participative’ touch.

It was decided that half the land acquired would be utilised for developing common assets like roads, social infrastructure and open spaces like parks, gardens and play grounds. The remaining half would be shared between the government and the land owner. The government’s share of this remaining land would be utilised for developing world-class infrastructure, various amenities as well as the capital complex. As per the Land Pooling scheme, the government would reconstitute land and develop adequate infrastructure for the new capital. It was also proposed that possession of developed land would be handed over to land owners within about two-and-a-half-years.

Impact on Realty

This proposal by the State government is expected to provide a tremendous boost to the realty sector of the capital city. The main beneficiaries of this scheme would be land owners from whom land will be acquired for developing the new capital. While they will get good returns for that part of their land acquired, the remaining part of their land will be returned to them as developed plots. Considering that these plots will be provided with all necessary facilities required for residential purposes, they will command exorbitant prices in future.

Specifics of the proposal

Considering that acquiring land from private parties has become inevitable, it would save the government valuable time if land owners proactively part with their land. For those land owners reluctant to participate in the Land Pooling scheme, the government would have to employ the provisions in the Land Acquisition Act to acquire land. The government also proposes to provide an annuity fee for a definite period to land owners who have parted with their land. Besides, it also plans to waive stamp duty, registration fees and conversion charges. Moreover, agricultural labourers and the landless poor would be provided with skill upgradation in their area of expertise so as to prepare them for employment. The government would also ensure that those in need are provided with secondary sources of income through the NREGA and other schemes.