VISAKHAPATNAM: Nearly three years after its launch, Andhra Pradesh’s ‘Smart Townships’ initiative, now known as ‘NTR Smart Townships’ under the new administration, has struggled to fulfill its commitment to providing affordable housing options for middle-income groups (MIG).
Out of 36 projects initiated across various Assembly constituencies, a mere 29% of plots have been sold, generating only 23% of the anticipated revenue. Additionally, urban development authorities (UDAs) have approved 38 more projects across 37 constituencies, currently in diverse stages of development.
The scheme’s underperformance can be attributed to several factors, including an income cap of ₹18 lakh for eligibility, plot allocation via lotteries despite no buyer choice, a rule limiting beneficiaries to one plot each, and prices that are uncompetitive compared to private offerings.
To combat these issues, the government has ceased accepting new applications for existing projects. Remaining applications will be processed through lotteries, and unsold plots will be auctioned commercially. Projects that have not been launched may be developed into standard commercial layouts, pending UDA notifications. A formal order regarding this has been issued.
For instance, the Visakhapatnam Metropolitan Region Development Authority (VMRDA) is developing MIG layouts in Vizianagaram, Visakhapatnam, and Anakapalli districts. Only a few layouts, like the Palavalasa layout near Anandapuram and some in Vizianagaram district near the upcoming Bhogapuram airport, have seen considerable interest. When first announced three years ago, the Palavalasa layout was priced at ₹18,000 per square yard, but after a poor response, the price was dropped to ₹14,500. While layouts in Visakhapatnam have recently seen increased demand, similar interest has not been witnessed elsewhere in the state.
A few months ago, the government announced a measure to assist MIG plot buyers by splitting the registration value into two components. Of the total, 60% will be recorded as the sale price, while 40% will be classified as development charges. This revised registration process, currently delayed due to updates, is projected to lower registration costs for buyers by approximately 40%.
The Smart Townships Scheme was conceived as a help for the middle and upper-middle-class sectors—especially those often overlooked by government welfare programs. For many, owning a residential plot remains a dream yet to be realized. The initiative also aimed to reserve a portion of plots for government employees and pensioners at a reduced rate compared to regular MIG applicants. Despite this well-intentioned approach, the scheme has not met its intended goals.
Initially, a demand survey for MIG plots received an enthusiastic response, with around 3.9 lakh individuals expressing interest in purchasing plots. However, this enthusiasm has not led to actual purchases, exposing a disconnect between interest and conversion, primarily due to various structural and pricing obstacles within the scheme.
