Vijayawada: The Andhra Pradesh govt released a new policy titled ‘Andhra Pradesh tourism land allotment policy 2024-2029,’ aimed at fostering private investments and boosting tourism infrastructure in the state. The policy, which came into effect on Tuesday, will remain in force for five years, replacing the earlier regulations issued in 2023.
The policy is designed to streamline land allotments for tourism projects under Public-Private Partnership (PPP) models. The state govt has emphasised the efficient utilisation of govt-owned land for developing tourism infrastructure, including hotels, resorts, wellness centres, amusement parks, and MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities.
Special chief secretary Ajay Jain stated that the new framework is expected to attract both domestic and international investors by simplifying approval processes and ensuring transparency in land allotment. The policy introduces a tiered investment classification for tourism projects based on capital investment, which is up to Rs 1 crore for micro projects and over Rs 500 crore for ultra mega projects.
Land allocation will be on a long-term lease basis, with 66-year leases for large projects (extendable by another 33 years) and 33-year leases for MSME projects (extendable by another 33 years). Construction timeframes have also been outlined, with 2 years allotted for large projects, 3 years for mega projects, and 4 years for ultra-mega projects. Additionally, land beyond specified limits can be allotted on a case-by-case basis depending on the project’s potential impact on employment and tourism growth.
The govt has set the lease rent at 1% of the sub-registrar office (SRO) value as annual lease rent (ALR). An additional development premium (ADP) will be introduced as a percentage of annual gross revenue or a minimum assured amount, whichever is higher. For MSME projects, land will be allotted through a transparent bidding process, whereas large, mega, and ultra mega projects will be allocated directly by the state investment promotion board (SIPB) based on the recommendations of the state investment promotion committee (SIPC).
The Andhra Pradesh tourism development corporation (APTDC) will oversee project implementation. Developers must complete their projects within the stipulated timelines, with penalties imposed for delays. A delay of up to 6 months will incur a 1% penalty on the total project cost, a 6-12 month delay will incur a 2% penalty, and beyond 1 year, the project lease may be cancelled, and the land reclaimed. Additionally, strict monitoring mechanisms will be implemented, with district collectors maintaining records of allotted lands and reviewing utilisation reports.
A key aspect of the policy is the mandate for eco-friendly and responsible tourism practices to preserve Andhra Pradesh’s natural, cultural, and heritage sites. The govt also aims to prioritise tourism projects in remote and underserved regions, ensuring balanced development across the state. The Andhra Pradesh tourism land allotment policy 2024-2029 is expected to play a significant role in transforming the state into a premier tourist destination. By fostering private investment, ensuring transparency, and encouraging sustainable development, the policy aims to position Andhra Pradesh as a key player in the national and global tourism sector.
