The Andhra Pradesh Government has relaxed some of the provisions of its Order which had made it mandatory for developers to reserve 20 per cent of developed land for the economically weaker section and lower income groups.

The Department for Municipal Administration and Urban Development late on Saturday issued a new Government Order relaxing existing norms. The order exempts housing projects coming up within five acres from reserving 20 per cent of the land for the economically weaker section.

As per the new order, if the project area is over five acres, the builder has to provide 10 per cent of the total built-up area for the economically weaker section or they can reserve some units.

The Order also provides that developers taking up projects above 3,000 sq.m. and up to five acres have to pay shelter fee to the respective municipal bodies.

The builders have to pay a shelter fee of Rs 400 per sq.mt metre up to 750 per sq.mt depending upon the project location.

Several real estate projects were in a limbo due to the earlier Government Order forcing them to put off of new projects.

Various builders associations had expressed concern about the earlier order and wanted the Government to relax the norms as it had become difficult to execute new projects with such stipulations. Several representations were made and now the new order seeks to address some of their concerns.

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