The Andhra Pradesh Legislative Assembly on Friday engaged in a detailed discussion on the bill to repeal the Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006, commonly known as the NALA Act.
Revenue Minister Anagani Satya Prasad stressed the compelling need for its abolition, emphasising its role in streamlining land conversions and accelerating the State’s economic growth.
Minister Satya Prasad explained that the repeal is a strategic move to further enhance the Ease of Doing Business (EoDB) rankings in Andhra Pradesh. He noted that land development is already governed by a robust framework of local body laws and urban development authorities, rendering the NALA Act redundant and burdensome.
“The Act has turned the process of obtaining permissions for non-agricultural use of farmland into a major headache,” he stated, highlighting how landowners are forced to shuttle between offices, facing undue delays due to officials preoccupied with other duties.
These inefficiencies, the minister added, have cascaded into broader setbacks, stalling building projects, industrial setups, and overall economic momentum. “The NALA Act has become an impediment to the state’s financial progress,” Anagani asserted, underscoring the urgent need for reform.
The decision followed the announcement of Chief Minister N Chandrababu Naidu’s announcement at the District Collectors’ Conference earlier this year, where he directed the repeal to eliminate developmental roadblocks, even if it meant forgoing revenue.
Acting on the CM’s instructions, the State Cabinet approved the draft bill in August, paving the way for its tabling in the Assembly.
Industry bodies, including CREDAI and NAREDCO, have hailed the move as ‘historic’, predicting a 20-30% surge in construction activity, up to 2% GDP growth by 2026-27, and over five lakh new jobs. Post-repeal, NALA fees collected by the Revenue Department will be redirected to panchayats
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