NAREDCO Hails Repeal of NALA Act: A Boon for Andhra Pradesh’s Real Estate Sector
Vijayawada: The Andhra Pradesh chapter of the National Real Estate Development Council (NAREDCO) has welcomed the state government’s decision to repeal the NALA Act, praising it as a significant step towards enhancing the ease of doing business and boosting the real estate and industrial sectors.
NaredcoNala ActAndhra PradeshReal EstateExternal Development ChargesReal EstateAug 22, 2025
Between 2009 and 2014, NALA charges in municipalities and panchayats ranged from 9 to 10 percent. During the 2014-2019 period, under the Chandrababu Naidu government, these charges were reduced to 2 percent for municipalities and 3 percent for panchayats. However, the subsequent government increased them to 5 percent, which had been a point of contention for the real estate industry.
NAREDCO has been a vocal advocate for the reduction of NALA charges and the implementation of a single-window system for building and layout approvals. The association’s efforts have finally borne fruit, and they expressed their gratitude to Chief Minister Nara Chandrababu Naidu and several key ministers, including Ponguru Narayana, Anagani Satya Prasad, and Payyavula Keshav, along with other officials, for this excellent decision.
The repeal of the NALA Act is expected to provide a significant boost to the real estate and industrial sectors in Andhra Pradesh. It is anticipated to enhance the ease of doing business, benefit homebuyers and investors, and align with the Chief Minister’s vision of Swarnandhra 2047. Other NAREDCO representatives who participated in the media interaction include Vice-president Paruchuri Kiran Kumar, Treasurer Chava Ramesh, and Assistant Secretary Mandava Sandeep.
This move is seen as a positive step towards creating a more favorable business environment in Andhra Pradesh, which could attract more investments and drive economic growth. The real estate sector, in particular, is expected to see a surge in activity, as the reduction in charges and the introduction of a more streamlined approval process will make it easier for developers to undertake new projects and complete existing ones.
Frequently Asked Questions
What is the NALA Act?
The NALA Act, or the Andhra Pradesh Local Authorities Laws (Amendment) Act, was a legislation that imposed a fee on developers for various municipal and panchayat approvals. These charges were a significant financial burden on the real estate sector.
Why was the NALA Act repealed?
The NALA Act was repealed to reduce the financial burden on developers, streamline the approval process, and enhance the ease of doing business in Andhra Pradesh. This move is expected to boost the real estate and industrial sectors.
What is the External Development Charge (EDC)?
The External Development Charge (EDC) is a new system of charges that will replace the NALA Act. It is designed to be more reasonable and easier to manage, thereby reducing the financial burden on developers and enhancing the approval process.
How will the repeal of the NALA Act benefit homebuyers and investors?
The repeal of the NALA Act will reduce the overall cost of real estate projects, making properties more affordable for homebuyers. It will also attract more investors due to the improved business environment and reduced regulatory hurdles.
What is the vision of Swarnandhra 2047?
The vision of Swarnandhra 2047 is a long-term development plan for Andhra Pradesh, aimed at making the state a prosperous and advanced region by 2047. The repeal of the NALA Act is seen as a step towards achieving this vision by fostering economic growth and development.
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