Only 29% of plots sold under MIG housing initiative

Time of India

3 days ago

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Visakhapatnam: Nearly three years after its launch, Andhra Pradesh's 'Smart Townships' scheme — renamed 'NTR Smart Townships' under the new govt — has struggled to deliver on its promise of affordable housing plots for middle-income groups (MIG).
Of the 36 projects initiated across Assembly constituencies, only 29% of plots have been sold, yielding just 23% of the projected revenue. Meanwhile, urban development authorities (UDAs) have sanctioned 38 additional projects across 37 constituencies, currently in various stages of development.
The poor performance of the scheme is attributed to several structural constraints — an annual income cap of 18 lakh for eligibility, plot allocation through lotteries with no buyer choice, a rule restricting each beneficiary to only one plot, and lack of competitive pricing compared to private offerings.
To address these bottlenecks, the govt has stopped accepting new applications for existing projects. Remaining applications will be processed via lotteries, and unsold plots will be auctioned commercially. Unlaunched projects may be developed as regular commercial layouts, subject to UDA notification. A formal order to this effect has been issued.
For instance, the Visakhapatnam Metropolitan Region Development Authority (VMRDA) is developing MIG layouts in Vizianagaram, Visakhapatnam, and Anakapalli districts.
Of these, only a few, such as the Palavalasa layout near Anandapuram and certain layouts in Vizianagaram district close to the upcoming Bhogapuram airport, have attracted significant interest. When the Palavalasa layout was first announced three years ago, the price was fixed at 18,000 per square yard.
Following a poor response, the price was reduced to 14,500 in subsequent months. While layouts in Visakhapatnam have seen improved demand recently, similar interest has not been observed in other regions of the state.
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n a move aimed at benefiting MIG plot buyers, the govt a few months has also decided to split the registration value of MIG plots into two parts. While 60% will be recorded as the sale price, 40% will be declared as development charges. Though the revised registration process is yet to begin due to delays in updating the format, this change is expected to reduce the overall registration charges for buyers by around 40%.
The Smart Townships Scheme was envisioned as a boon for the middle and upper-middle-class segments — particularly those who are often excluded from govt welfare schemes and subsidies. For many in this group, the dream of owning a residential plot has long remained unfulfilled. The scheme also included a provision reserving a certain percentage of plots for govt employees and pensioners at a discounted rate compared to regular MIG applicants.
Despite this inclusive approach, the scheme has not achieved the anticipated success.
Notably, the initial demand survey for MIG plots under the initiative drew an overwhelming response, with around 3.9 lakh people showing interest in buying the plots. However, this enthusiasm did not translate into actual plot purchases, highlighting a gap between interest and conversion that can be attributed to several structural and pricing challenges within the scheme.
Infographics:
Pricing, Eligibility Hurdles Stall Sales
A demand survey was conducted before the launch of the MIG layout scheme
It has garnered interest from about 3.9 lakh individuals
A total of 36 smart township projects have been launched by different UDAs in last 3 years
38 more projects have been approved in 37 Assembly constituencies
Of the launched projects, only 29% of plots have been sold
And just 23% of the expected revenue has been realised
plots in these layouts are allocated through a lottery system at a fixed price
Plots are developed in three sizes – 150, 200 and 240 square yards