Andhra Pradesh Government Implements 60-40 Model for Middle-Income Group Plots
The Andhra Pradesh government has officially commenced registrations for middle-income group (MIG) plots under the ambitious Dr NTR Smart Township scheme, introducing a groundbreaking 60-40 financial model that promises substantial savings for thousands of beneficiaries across the state.
How the 60-40 Model Works
Under this innovative system, the total plot value is strategically divided into two distinct components: 60% of the land value is treated as the actual sale price, while the remaining 40% is categorized as development charges. This structural separation has resulted in a remarkable 40% reduction in registration fees for plot owners, significantly easing their financial burden during the property acquisition process.
Substantial Savings for Plot Owners
Initial assessments indicate that individual plot owners can expect to save anywhere between ₹60,000 to ₹1 lakh, depending on the specific size and location of their allocated plot. Early beneficiaries in layouts like Palavalasa near Anandapuram have already begun experiencing these financial benefits firsthand.
E Reddy, an MIG plot allottee in the Palavalasa layout, shared his perspective with local media: "The government's decision has benefited everyone, including several pensioners who were allotted MIG plots under the Smart Township Scheme. Splitting the plot value into 60% land cost and 40% development charges for registration has genuinely reduced the financial pressure on buyers."
Statewide Implementation and Impact
With MIG layouts being developed across multiple urban local bodies throughout Andhra Pradesh, this initiative is projected to benefit thousands of middle-income families who have traditionally been excluded from government welfare and housing schemes. In the Visakhapatnam Metropolitan Region Development Authority (VMRDA) jurisdiction alone, more than 2,000 allottees stand to gain from this revised registration approach.
The official implementation follows an April 2025 government order that mandated the 60-40 split and directed authorities to register plots through two separate documents instead of a single comprehensive document. One document indicates the base price (accounting for 60% of sale value) while the other specifies development charges (accounting for the remaining 40%).
Registration Process Details
Registration fees of 7.5% and 0.5% are being levied by the registration and stamps department on the respective components. Although the initiative faced implementation challenges at the urban authority level initially, the revised registration process has been officially operational at registration offices throughout the state over recent weeks.
Political Recognition and Public Response
Beneficiaries have expressed particular appreciation for the efforts of Duvvarapu Ramarao, MLC and TDP state general secretary, who voluntarily championed the issue with VMRDA and state government authorities before raising it in the Legislative Assembly. His advocacy is credited with facilitating savings worth tens of crores of rupees for thousands of MIG plot allottees.
The overwhelming public interest in this scheme was evident even before its formal launch, with the initial demand survey receiving approximately 3.9 lakh applications from interested parties across Andhra Pradesh, highlighting the significant need for affordable housing solutions among middle-income groups.
