Apparently realizing that there is a huge demand for land in the coastal Andhra in view of the proposal to locate the new capital, the AP government officials proposed a massive hike in increase in the market value of the land by 30 per cent from August 1.
However, Chief Minister Nara Chandrababu Naidu reportedly rejected the proposal submitted by the Stamps and Registration Department recommending an increase in market value of land and properties.
While official sources said Naidu was against the revision at this stage as it might put additional burden on the people, the actual reason is said to be non-availability of land for constructing government buildings in the new capital and the government would have to shell down heavy amount to the people to acquire the land.
Interstingly, Revenue Minister KE Krishnamurthy is learnt to have already cleared the file for revision of land values, as it would increase revenues for the cash-strapped Government of Andhra Pradesh.
The realty sector, especially in major towns like Vijayawada, Guntur, Visakhapatnam and Rajahmundry has seen an upward swing after the bifurcation of Andhra Pradesh on June 2.
