Target to be Set at Rs. 1200 Crore for Enhanced Contribution
Visakhapatnam, June 2, 2023: Following a special revision of land prices in the state, Visakhapatnam is expected to contribute approximately 10% of the registration revenue to the exchequer. The state stamps and registrations department has set a target of earning Rs. 12,000 crore in the current financial year, with Vizag’s target fixed at Rs. 1200 crore.
Anakapalli and Srikakulam districts have revenue targets of Rs. 400 crore and Rs. 500 crore, respectively. The special revision has resulted in an average price hike of 20% to 25%. Conversion of agricultural land into non-agricultural land leads to higher prices due to the change in land nature. The revision also takes into account land conversion and LP numbers, which can increase the price.
The department considered the requests of real estate associations during the revision process. Balakrishna emphasized that the department would not exceed 60% of the open market value when revising prices, whether it is a general revision or a special revision.
In the previous financial year, Visakhapatnam district had a revenue target of Rs. 1,000 crore. However, with the special revision, it is estimated that the exchequer will gain an additional Rs. 1,000 crore, with Vizag contributing around Rs. 100 crore.
G. Balakrishna, DIG of stamps and registrations, stated that a lower percentage of price enhancement results in a higher price for land with a high base price. The minimum enhanced price is set at 9% of the base price of the land. The revision focuses on areas with high potential and a larger number of registrations, covering only 20% of the area in each sub-registrar office jurisdiction.
The prices were enhanced in areas witnessing real estate and construction activity, as well as those with new roads and layout permissions. Construction activity is particularly high in areas such as Madhurawada, Pendurthi, Vepagunta, Bheemili, and others.
The revised land prices are expected to significantly contribute to the revenue of the stamps and registrations department, thereby boosting the state’s overall financial performance.