From Our Correspondent
Amaravati — In a major reform move, the Andhra Pradesh Legislative Assembly has passed a bill to repeal the NALA Act — officially the Andhra Pradesh Agricultural Land (Conversion for Non-Agricultural Purposes) Act, 2006.
What’s the NALA Act — and why abolish it?
The NALA Act governs how agricultural land can be converted for non-agricultural purposes (for example, for building houses, industries or commercial establishments). Under this law, landowners had to pay conversion charges and undergo multiple bureaucratic steps, which many critics argued were burdensome and opaque.
Chief Minister N. Chandrababu Naidu had announced the abolition in March 2025, calling the Act a major obstacle to development. He said the state would make up for any revenue loss through alternative means.
Steps taken & how the repeal will work
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The repeal was unanimously passed by the Assembly as the AP Agricultural Land (Conversion for Non-Agricultural Purposes) (Repeal) Bill, 2025.
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A cabinet sub-committee including the Finance, Municipal Administration, and Revenue Ministers has been tasked with drafting new guidelines. These guidelines propose automatic conversion of agricultural land once required taxes are paid — eliminating the multiple office visits and delays that currently plague the system.
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The government also plans to review and possibly reduce the tax/charge rates under the new regime.
Reactions & implications
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Industry and real estate sectors have greeted the move with enthusiasm. Associations such as CREDAI and AP Chambers of Commerce praised the repeal as a progressive, user-friendly step that will remove a major hurdle to investments.
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Developers expect the reform to drastically simplify land conversion, reduce costs, and speed up urban and industrial growth.
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Critics or cautious observers will be watching how the government balances revenue replacement and prevents misuse (e.g. speculative conversions or loss of agricultural land in sensitive zones).