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Andhra Pradesh reduces registration costs for middle-income group plots under 60-40 model

#Law & Policy#Residential#India#Andhra Pradesh
Last Updated : 31st Jan, 2026
Synopsis

The Andhra Pradesh government has introduced a revised registration framework for middle-income group (MIG) plots developed under its Dr NTR Smart Township scheme, aimed at lowering the cost burden on buyers. Under the new 60-40 model, 60 per cent of a plot's value is treated as the base sale price and 40 per cent as development charges for the purpose of registration, significantly reducing overall stamp duty and registration fees. The split allows authorities to apply a higher fee on the base sale component and a nominal rate on development charges, leading to potential savings of roughly INR 60,000 to INR 1 lakh for individual buyers. The revised process, announced last year, has now been implemented at registration offices, enabling thousands of plot allottees across the state to benefit.

The Andhra Pradesh government has implemented a revised registration structure for middle-income group (MIG) plots under the Dr NTR Smart Township initiative, designed to reduce upfront transaction costs and encourage wider uptake among eligible buyers. The policy adopts a 60-40 value split for determining registration charges, which significantly lowers the fees payable at the time of plot registration.


Under the new framework, 60 per cent of the plot's total value is treated as the principal sale price, with the remaining 40 per cent classified as development charges. Registration fees, levied by the state's stamps and registration department, are applied at the standard sale deed rate on the base portion and at a considerably lower rate on the development component, effectively easing the fee burden on buyers. This approach is expected to reduce overall registration costs by around 40 per cent compared with earlier single-value charging methods.

State officials and beneficiaries have noted that this change translates to savings of roughly INR 60,000 to INR 1 lakh per plot, though the precise benefit varies with the plot's size and location. Thousands of allottees, particularly within the Visakhapatnam Metropolitan Region Development Authority jurisdiction and other urban local bodies where MIG layouts have been developed, are anticipated to benefit from the revised regime.

The 60-40 model was first announced in an official order in April of the previous year but had faced delays in implementation at the urban authority level. Recent adjustments have now enabled registration offices to process plot registrations under the new structure, providing relief to plot holders who had been waiting for the order's enactment.

The Dr NTR Smart Township scheme was designed to offer planned plots to middle-income buyers across urban areas of Andhra Pradesh, a segment that traditionally has limited access to government housing programmes. Prior to this adjustment, the registration cost based on full plot value had deterred some potential buyers, prompting calls for reform. The revised model seeks to address these concerns by aligning fees more closely with market realities and supporting affordability for the MIG segment.

While details specific to eligibility criteria or plot allocation remain governed by the original township scheme rules, the revised registration fee structure is expected to bolster buyer interest and ease the financial entry cost for prospective owners across the state.

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