Andhra Pradesh’s Repeal Of The NALA Act: Implications For Land Regulation And Development

In September 2025, the Andhra Pradesh Legislative Assembly unanimously passed legislation repealing the Andhra Pradesh Non-Agricultural Lands Assessment (NALA) Act, 1963, bringing an end to a statutory framework that governed the assessment of land converted from agricultural to non-agricultural use for over six decades. The repeal follows the promulgation of an ordinance earlier in the year and reflects the State’s broader effort to streamline land governance and facilitate economic development.

Over time, however, the Act became associated with procedural delays, multiple layers of approval, and inconsistent assessment practices, particularly in relation to conversion approvals and assessment determinations at the revenue level.

Background and Rationale

The NALA Act was originally enacted to regulate land-use conversion and to enable the State to levy assessments on lands put to non-agricultural use. Over time, however, the Act became associated with procedural delays, multiple layers of approval, and inconsistent assessment practices. These issues were frequently cited by developers and landowners as impediments to timely project execution.

The Statement of Objects and Reasons accompanying the repeal legislation notes that the NALA Act has become redundant in light of contemporary regulatory mechanisms, including urban planning laws, municipal taxation statutes, and digitised land records.^[3] According to the State government, these parallel frameworks now sufficiently address land-use control and revenue considerations, rendering the NALA regime unnecessary.

Legislative Developments

The Andhra Pradesh Non-Agricultural Lands Assessment (Repeal) Bill, 2025 (Bill No. 29 of 2025), formally repeals the 1963 Act in its entirety. Prior to its enactment, the government had promulgated Ordinance No. 5 of 2025, signalling the urgency attached to the reform. The Bill was passed unanimously by the Assembly, underscoring a rare consensus across political lines on the need to revisit the existing land assessment framework.

Notably, the legislation effects a clean repeal, without extensive transitional provisions. This suggests a policy preference for a forward-looking regulatory reset rather than incremental modification of the earlier regime.

Policy Objectives and Expected Impact

Government statements accompanying the repeal have framed the NALA Act as an obstacle to growth, particularly in the context of infrastructure development and industrial investment. Municipal Administration and Urban Development Minister Anagani Satya Prasad reportedly stated that the Act had hindered Andhra Pradesh’s economic progress and discouraged investment.

From a practical standpoint, the repeal is expected to reduce compliance burdens associated with land-use conversion and eliminate a layer of assessment that often delayed approvals. Responsibility for land regulation and revenue collection is likely to shift more decisively toward local bodies and planning authorities under existing municipal and development laws.

Looking Ahead

While the repeal has been welcomed by sections of industry as a step toward regulatory simplification, its success will depend on effective implementation and coordination among revenue, municipal, and planning authorities. Questions may also arise regarding pending assessments or disputes initiated under the repealed Act, which may require administrative or judicial clarification.

Overall, the repeal of the NALA Act represents a deliberate move by the State toward a simplified, investment-oriented land governance framework, one that aligns legacy regulation with contemporary economic and administrative realities.

Questions may also arise regarding pending assessments or disputes initiated under the repealed Act, particularly in the absence of express savings or transitional clauses, which may require administrative or judicial clarification.