Andhra Pradesh Cabinet clears amendments to expedite Amaravati land procurement under Negotiated Settlement Policy

The Hindu

2 days ago

The Andhra Pradesh Cabinet has approved amendments to the Negotiated Settlement Policy (NSP) to expedite land procurement for key infrastructure projects in Amaravati. The decision, taken on July 24, 2025, aims to overcome the practical hurdles encountered under the earlier framework and accelerate the development of the capital city.
Under the existing NSP, the government had managed to acquire only nine acres—roughly 7% of the required 130 acres—in the R1 Zone earmarked for priority roads and utilities. With the new amendments in place, the focus shifts to acquiring the remaining 121 acres by offering improved compensation packages. The targeted land spans across 24 villages situated within Amaravati's core capital region.
According to the Andhra Pradesh Capital Region Development Authority (APCRDA), it was observed that certain stretches of proposed priority roads and infrastructure projects fall in areas exempted from the Land Pooling Scheme (LPS), particularly in the demarcated village sites and extended habitations within the R1 Zone. Since LPS is not applicable in these exempted areas, and land acquisition under the LA R&R Act, 2013 is a time-consuming process, the government proposed to acquire land in these areas—and also some scattered houses located within the LPS but outside the R1 Zone—through negotiated settlements, as permitted under Section 124 of the APCRDA Act, 2014.
The recent Cabinet-approved modifications introduce several key changes. Instead of the earlier plinth-area-based compensation, the revised policy allows for land-for-land allotments. The financial grants and resettlement benefits have been significantly increased. For families displaced by the project, the monthly livelihood grant has been doubled to ₹5,000 for a period of 10 years. In addition, housing construction assistance has been raised to ₹1.8 lakh, while transportation, subsistence, and resettlement allowances have also been enhanced.
Officials underscored that the updated policy is designed to ensure fair and adequate compensation for landowners and to avoid procedural delays that could hold up critical infrastructure works. They also noted that landowners and farmers in the Amaravati region have shown considerable support for the capital city's development. The government believes the revised NSP will facilitate smoother land procurement and faster execution of infrastructure projects that are essential to transforming Amaravati into a world-class people's capital.