Amaravati: Representatives from the industries and real estate sector have expressed their jubilation over State Cabinet approval to a draft bill to repeal the Andhra Pradesh Land (Conversion for Non-Agricultural Purposes) Act, 2006.

The NALA fees, now being collected by the Revenue Department, henceforth will become the main source of revenue for funding the Grama Panchayats to take care of local infrastructure development like roads, water supply, drainage and other basic amenities.

AP Chambers of Commerce, Credai and NAREDCO described the decision by the Cabinet as historic and user-friendly and help the investors to have hassle-free land conversion in future.

“No more the entrepreneurs and real estate developers need not run from pillar to post to get clearances for conversion of lands from agriculture to non-agriculture. Now, simply through online application, one can get clearance by paying certain amount of fee. The decision will ensure total transparency in land use change,” Potluri Bhaskara Rao, president, AP Chambers of Commerce and Industry Federation, said on Friday.

When contacted, CREDAI Andhra Pradesh chapter president Bayana Srinivasa Rao said the ‘revolutionary’ decision will usher in an encouraging change for development of real estate across the State. With land becoming scarce due to rapid urbanisation, now the process will become easy to get clearnaces for conversion of agriculture lands for real estate and industrial purposes, he remarked.

NAREDCO president Gadde Chakradhar and general secretary Mamidi Seetharamiah said the decision to repeal the NALA Act and collect External Development Charges for municipal and industrial approvals will give a big relief to the investors. They said NALA charges were brought down from 9 to 10% between 2009 and 2014 to 2 to 3% during the first stint of TDP-led NDA Government in the State.

It was jacked up to 5% by the YSRCP Government.

They said the decision will proper growth and facilitate achieving the targets set in Swarnandhra Vision in a hassle-free manner because of transparency providng a big boost to industrialisation and real estate sector.