Andhra Pradesh’s 60-40 Model Reduces MIG Plot Costs


VISAKHAPATNAM: The Andhra Pradesh government has initiated registrations for middle-income group (MIG) plots under the Dr. NTR Smart Township scheme, utilizing a 60–40 model. In this approach, 60% of the land value is categorized as the sale price while 40% represents development charges, effectively lowering registration fees by 40%.

Plot owners are projected to save between ₹60,000 and ₹1 lakh, depending on the size of the plot, with layouts like Palavalasa near Anandapuram already yielding benefits. With MIG layouts being developed statewide, this initiative is expected to positively impact thousands, leading to total savings in the crores. Specifically, in the VMRDA jurisdiction, over 2,000 allottees are set to benefit.

In an interview with TOI, E Reddy, an MIG plot allottee from the Palavalasa layout, emphasized that the government’s decision has extended benefits to everyone, especially pensioners allocated MIG plots under the Smart Township Scheme. He mentioned that breaking down the plot value into 60% for land cost and 40% for development charges has significantly alleviated financial burdens on buyers.

“We express our gratitude to Duvvarapu Ramarao, MLC, TDP state general secretary, the MAUD minister, the revenue minister, the Visakhapatnam district collector, the district registrar, and the VMRDA metropolitan commissioner/chairperson. A special thanks to MLC Ramarao for actively addressing this issue with the VMRDA and state government and presenting it in the Assembly. Thanks to his efforts, thousands of MIG plot allottees will save substantial funds,” Reddy stated.

In an official directive released in April 2025, the state government announced the 60–40 split, instructing authorities to register plots under the scheme using two separate documents. One document details the base price (60% of the sale value), while the other specifies development charges (40%). Registration fees are levied at 7.5% and 0.5% respectively by the registration and stamps department. While the initiative faced delays at the urban authority level for various reasons, the revised registration process has recently been implemented at registration offices. The state government has developed these MIG layouts in urban local bodies across the state to provide housing for the middle-income group, considering they have not been included in any welfare or housing schemes. Prior to the launch, the demand survey for MIG plots under this scheme received around 3.9 lakh applications statewide.

  • Published On Jan 26, 2026 at 07:03 AM IST

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