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The Andhra Pradesh government's NTR Smart Townships scheme, aimed at the middle-income group (MIG), has seen a poor response with just 29% of the plots sold and only 23% of the expected revenue collected. Despite initial interest from nearly 3.9 lakh applicants, various issues like pricing, eligibility restrictions, and lottery-based allotment discouraged buyers. The government has now paused fresh applications, plans to auction unsold plots, revise fee structures, and convert unlaunched layouts into commercial zones under the Urban Development Authority.
The Andhra Pradesh government's flagship MIG housing scheme under the NTR Smart Townships has recorded a weak response, with only 29% of the total plots sold. This falls far short of expectations, with just about 23% of the projected revenue realised. The scheme was launched nearly three years ago to provide affordable housing to the middle-income segment. Advertisement
Although around 3.9 lakh people had shown interest in the scheme initially, the actual number of buyers turned out to be significantly lower. The limited sales have been mainly attributed to several key restrictions, including a maximum annual income cap of INR 18 lakh, a limit of one plot per family, and a lottery-based allotment system that prevents buyers from selecting specific plots.
Another major concern raised by officials is the pricing. Many private layouts are offering better rates and flexibility, making the government plots less attractive. In several districts, there was barely any response. However, layouts such as Palavalasa near Bhogapuram airport and some locations in Vizianagaram saw relatively better interest after prices were reduced from INR 18,000 to INR 14,500 per square yard.
In light of the weak demand, the state government has paused new applications for the layouts that have already been launched. A final lottery will be held to process the pending applications. For the unsold plots, the government is preparing to conduct open auctions. Meanwhile, layouts that were planned but not yet launched will now be reclassified and developed as commercial layouts under the jurisdiction of the Urban Development Authority.
To reduce the financial burden on buyers, the state is also planning to split the registration charges. As per the proposal, 60% of the total payment will be considered as plot value and 40% as development charges. This move is expected to lower registration costs by up to 40%, although the new registration format is still pending implementation.
Officials are also working on revising the overall pricing model and incentives to make the scheme more competitive. While the original aim of the scheme was to provide affordable land to the middle class through state-driven layouts, the lack of flexibility and higher-than-market prices have become key obstacles.
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