APIIC Land Allotment Regulations
New Land Allotment Policy (Lease → Sale Deed) — G.O. Ms. No. 117, dt. 09.11.2023
APIIC Official Portal — https://apiic.in/
Agenda
About APIIC
Incorporated 26 September 1973 as a wholly owned undertaking of the Government of Andhra Pradesh — APIIC plans, develops and allots industrial infrastructure and is the nodal agency for Government-sponsored industrial schemes.
Mandate
Provide industrial infrastructure through the development of industrial areas — parks, SEZs and sector-focused estates for apparel, food processing and leather — and execute civil works for Government departments.
APIIC Towers, Plot No. 1 (9th–11th floors), IT Park,
Mangalagiri, Guntur District, A.P. 522503
Authorised capital ₹20 cr · Paid-up ₹16.33 cr
Existing Land Allotment Process
Applications are filed online on the Single Desk Portal, which is integrated with the APIIC portal. Each stage below carries a statutory service level under G.O. Ms. No. 67.
G.O. Ms. No. 67 — Allotment Regulations 2023
Notified on 24 July 2023 and effective immediately, the Regulations replace the earlier framework for all new allotments in estates developed or possessed by APIIC. Allotments made in 2020 or earlier continue under the regulations then in force; decided cases and matters pending before courts are excluded.
Application Workflow & Committees
| Extent | Deciding authority | Cycle |
|---|---|---|
| Up to 50 acres | State Land Allotment Committee (SLAC), chaired by VC&MD | Every 30 days |
| Above 50 acres | Government through SIPC / SIPB on the recommendation of the Committee of Senior-most Secretaries — chaired by Special CS (I&C), VC&MD APIIC as Convener | At least once in 2 months |
| Undecided > 60 days | Board of APIIC; appeal also lies with the Board | On reference |
| IT / ITES | Requisition to Department of ITE&C for recommendation | 15 days |
| Food processing | Requisition to AP Food Processing Society | 15 days |
- Priority to expansion — where multiple applications are received for the same plot, an existing unit expanding by at least 25% of installed capacity ranks first
- SC & ST, BC, Women, Ex-servicemen — 10%
- Land losers from acquisition for industrial development — 10%
- Projected investment — 10%
- Projected employment — 10%
- Land sought for expansion — 10%
Pricing, Fees and Instalments
Occupancy adjustment of the base price
Frontage charges by abutting road
| Option | Paid upfront | Lease term | Balance allotment price | Annual lease rental |
|---|---|---|---|---|
| 1 | 100% | 33 / 66 years | Nil | ₹1,000 per acre p.a., max ₹10,000, from signing of the lease deed |
| 2 | 75% | 33 / 66 years | Over 4 years at 12% p.a. or over 6 years at 9% p.a. | As above |
| 3 | 50% | 33 / 66 years | Over 4 years at 20% p.a. or over 6 years at 15% p.a. | As above |
| 4 | 25% (SC/ST only) | 33 / 66 years | Balance 75% in 8 equal annual instalments with 8% interest per annum | As above |
Investor Eligibility & Concessions
- Reservation — 16.2% for SC and 6% for ST of the net allotable area in every industrial park and SEZ
- No EMD payable at the time of online application
- 50% rebate on the allotment price, capped at ₹20 lakh, reimbursed to APIIC by the Industries Department
- Rebate applies even where the selected plot is not a reserved plot; limited to one individual per family
- Implementation period 3 years from possession; penalties at 50% of the general-category rate
- Reserved plots vacant beyond 3 years — once all non-reserved plots are allotted — open to all applicants
| Mandal category | Qualifying threshold | First 10 anchors | Next 10 anchors |
|---|---|---|---|
| Category C — low | Investment > ₹100 cr or > 1,000 direct jobs | 33% discount | 20% discount |
| Category B — moderate | Investment > ₹250 cr or > 1,500 direct jobs | 20% discount | 12% discount |
G.O. Ms. No. 117 — Lease Model to Sale Deed Model
- Entrepreneurs reported that banks, financial institutions and NBFCs would not lend against APIIC lease deeds, delaying project implementation
- The State Investment Promotion Board, in its meeting of 30 October 2023, directed a review of the land allotment policy to retain Andhra Pradesh's lead in Ease of Doing Business
- The sale deed model was adopted with conditions ensuring the land continues to be used for the industrial purpose allotted
Effect
The New Land Allotment Policy for Allotment of Lands for Industrial Units comes into effect retrospectively from 1 April 2020.
Under G.O. 67 the earlier route remains on record: sale deed after 10 years from DCP without premium where the project was implemented within committed timelines, or with a 20% premium where it was not (cl. 14.7).
Issued by N. Yuvaraj, Secretary to Government & CIP · Ind. & Comm. (Infra) Dept.
Lease Model vs Sale Deed Model
| Dimension | Lease Model — G.O. Ms. No. 67 | Sale Deed Model — G.O. Ms. No. 117 |
|---|---|---|
| Ownership | Leasehold for 33 / 66 years on "as is where is" basis, extendable to 99 years after 10 years of successful operation from DCP at no additional amount. | Freehold on sale basis. Sale Agreement on receipt of land cost; Final Sale Deed on successful implementation of the project (or of each phase). |
| Mortgage | Leased plot may be mortgaged only after obtaining an NOC from APIIC, and only for factory construction or plant and machinery. | Title in the allottee's name after the sale deed supports conventional mortgage without a park-level NOC dependency. |
| Registration | Lease documents submitted within 7 days of the Final Allotment Letter; lease deed executed and registered within 21 working days. | Sale Agreement registered on payment; Final Sale Deed registered after implementation is certified. |
| Financing | Banks, financial institutions and NBFCs were reluctant to lend against lease deeds — the specific gap recorded in G.O. 117. | Explicitly intended to facilitate financial assistance from financial institutions for implementing projects in the State. |
| Transfer | Transfer of allotment governed by cl. 29; on default to a lender APIIC may determine the lease or permit transfer to the auction purchaser on payment of dues. | Transfer follows ownership once the Final Sale Deed is executed, subject to the industrial land-use condition. |
| Recurring cost | Annual lease rental of ₹1,000 per acre (maximum ₹10,000 per allotment) for the lease period, plus maintenance and property tax. | No annual lease rental after buyout / sale; maintenance charges and property tax continue. |
| Compliance | Implementation within 24 / 36 months, quarterly progress reports, inspection every 3 months, EoT penalties from 1% to 8%. | Same DPR timelines are written into the Sale Agreement; land utilisation and implementation monitored under the District Collector's supervision. |
| Exit | Cancellation with forfeiture of 10% / 20% / 25% by extent and category, plus cumulative occupancy charges. | Final Sale Deed withheld until implementation, so non-performing allotments remain recoverable. |
APIIC Website & Online Services
apiic.in
Land Bank
Vacant land parcels available for industrial use across APIIC parks.
digital.apiic.in/landbank
GIS Enquiry — Agile 2.0
Interactive map-based industrial land enquiry with park and plot geometry.
gisviewer.apiic.in
Industrial & MSME Parks
Live MSME park plot vacancies — entrepreneurs apply online against published availability.
kpi.apiic.in · MSME_Parks
Downloads
Allotment Regulations 2023, lease deed formats, MOA & AOA, annual reports, empanelment lists.
Policies & Procedures
Notifications
TDS under section 194-IA on allotments of ₹50 lakh and above; MSME plot vacancy notices; tender notices.
Information · Tenders
Policies
Allotment Regulations, CSR policy, environmental clearances, objective criteria for land allotment, DPR components.
Policies & Procedures
Contact & Grievance
Zonal offices, grievance and enquiry desk, IALA services — grievance redressal every Monday from 10 AM.
Grievance / Enquiry · IALA
APIIC Land Bank
- Land Bank — vacant parcels by park and district
digital.apiic.in/landbank - MSME park vacancies — plot-level availability and status
kpi.apiic.in · MSME_Parks - GIS Agile 2.0 — park and plot geometry for map overlays
gisviewer.apiic.in - Single Desk Portal — application and DCP status
apindustries.gov.in
Land bank utilisation
Andhra Pradesh at a Glance
Mandal categorisation by industrial GVA
- Category A — highly industrialised mandals: no additional discount; premium and frontage loadings apply
- Category B — moderately industrialised: first 10 anchor units get a 20% discount, the next 10 get 12%
- Category C — low industrialised: first 10 anchor units get a 33% discount, the next 10 get 20%
- In B and C mandals APIIC prefers Government land, avoids admin buildings and uses low-cost roads and drains to keep the allotment price down
Business Process & Status Lifecycle
Implementation milestones
| Extension | Penalty on prevailing allotment price |
|---|---|
| Up to 3 months | 1% |
| Up to 6 months | 2% |
| Up to 12 months | 4% |
| Up to 18 months | 6% |
| Up to 24 months | 8% |
Thank You
APIIC Towers, Plot No. 1 (9th–11th floors), IT Park,
Mangalagiri, Guntur District, Andhra Pradesh 522503
https://apiic.in/