AP Cabinet Approves Amendments to Speed Up Amaravati Land Deals

Swift Summary

• The Andhra Pradesh Cabinet approved amendments to the Negotiated Settlement Policy (NSP) to speed up land acquisition for Amaravati’s infrastructure projects on July 24, 2025.
• Current land acquisition under the NSP covers only nine acres-7% of the required 130 acres-within Amaravati’s R1 Zone earmarked for priority roads and utilities.
• Amendments aim to acquire the remaining 121 acres across 24 villages by offering enhanced compensation packages, including increased financial grants and resettlement benefits.
• Key changes include:

– Introduction of land-for-land allotments instead of plinth-area-based compensation.
– Doubling monthly livelihood grants for displaced families to ₹5,000 over 10 years.
– Increased housing assistance: ₹1.8 lakh per family. Other allowances raised significantly for transportation, subsistence, and resettlement needs.

• The Andhra Pradesh Capital Region Progress Authority (APCRDA) cited practical hurdles in acquiring exempted areas under previous frameworks like the Land Pooling Scheme or LA R&R Act, 2013.
• Officials claim that updates in policy aim at ensuring fair compensation while accelerating Amaravati’s transformation into a world-class city.

Indian Opinion Analysis

The revised Negotiated Settlement policy represents a significant step forward in addressing challenges related to land procurement within Amaravati’s capital region development initiatives.By prioritizing fairness through improved compensatory measures such as “land-for-land” allotment and enhanced financial support for displaced families, the government seeks both efficiency and public cooperation.

While procedural hurdles had hindered progress under earlier frameworks like LPS or LA R&R Act processes that proved lengthy and complex-the current approach appears more pragmatic by utilizing negotiated settlements permitted under APCRDA laws specifically tailored to thes circumstances.

If implemented effectively, these amendments could fast-track infrastructure works critical for making Amaravati a functional capital city with adequate roadways and utilities supporting its growth trajectory-a project with broad implications not just regionally but also nationally as India builds forward-looking urban spaces.

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