Andhra Pradesh’s Smart Township Scheme Sells Only 29% of Plots, Government Plans Overhaul

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Andhra Pradesh’s flagship middle-income housing programme, the NTR Smart Township Scheme, has recorded limited success nearly three years after its launch, with only 29 percent of plots sold and 23 percent of projected revenue generated, according to official data.

The scheme, aimed at providing affordable and planned housing for middle-income families, covered 36 township layouts across 66 constituencies, with 74 projects approved. While the initiative initially attracted interest from about 3.9 lakh potential buyers, sales have remained low.

Officials attribute the poor response to several factors, including an annual income cap of ₹18 lakh, allotment of plots through a non-preferential lottery system, a one-plot-per-family restriction, and uniform pricing regardless of location or size. These conditions made the scheme less competitive compared to private sector offerings.

In response, the state government has announced major changes. New applications for existing projects have been suspended, and pending applications will be processed through a one-time lottery. Remaining unsold plots will be auctioned under development authority guidelines. Layouts planned but not yet launched will be converted into commercial plots and managed by urban development authorities as per prevailing rules.

A revised registration system is also being introduced, splitting plot costs into 60 percent sale price and 40 percent development charges. This change is expected to reduce registration fees by around 40 percent.

Some layouts, such as Palavalasa near Bhogapuram airport and certain projects in Vizianagaram, saw moderate interest after price adjustments, but most districts recorded weak demand despite the scheme offering reserved plots for government employees and pensioners.

Urban Development Principal Secretary S. Suresh Kumar said the scheme was designed with good intentions but struggled due to market misalignment. He added that the new guidelines aim to streamline processes, boost sales, and ensure better utilisation of urban land.