Andhra Pradesh Cabinet Enhances Benefit Package for Amaravati Land-Pooling Farmers

What was decided

The Andhra Pradesh Cabinet approved an enhanced benefits package for farmers participating in the Amaravati Land Pooling Scheme (LPS), aimed at resolving pending issues and encouraging participation in the second phase of pooling. The Andhra Pradesh Government announced a fresh package of benefits for Amaravati farmers as it accelerates the development of the state capital, with decisions approved by the Cabinet aimed at resolving pending issues and encouraging participation in the second phase of the Land Pooling Scheme. The Cabinet decision followed a related recommendation cleared days earlier at the 63rd Authority meeting of the AP Capital Region Development Authority (APCRDA), also chaired by the Chief Minister, which had approved raising the annuity for farmers giving land under pooling since June 2024.

Revised annuity structure

Under the latest government orders, the annual annuity for farmers who signed land pooling agreements on or after June 12, 2024, has been increased: owners of dry land will now receive Rs. 40,000 per acre per year, up from Rs. 30,000, while farmers who pooled irrigated land continue to receive Rs. 60,000 per acre annually. Separate cabinet-decision reporting corroborates that the irrigated-land base rate itself was raised as part of the same package — the Cabinet approved an increase in the annual annuity paid to Land Pooling Scheme beneficiaries for the next ten years, with dry land owners raised from Rs. 30,000 to Rs. 40,000 per acre and irrigated land owners raised to Rs. 60,000 per acre instead of the existing Rs. 50,000.

On top of the new base rates, the Cabinet enhanced the annual annuity for land pooling farmers to Rs 40,000 per acre for dry land and Rs 60,000 per acre for irrigated land, with annual increases of Rs 3,000 and Rs 5,000 respectively over 10 years. This structure builds on the original 2025 Land Pooling Scheme Rules, under which annual annuity payments started at Rs 30,000 for dry land and Rs 50,000 for jareebu land in the first year, increasing by Rs 3,000 for dry land and Rs 5,000 for jareebu land every year.

Rehabilitation grant for displaced families

The government has also doubled the monthly rehabilitation grant for 634 project-displaced families from Rs. 5,000 to Rs. 10,000, with the revised amount including rental assistance and intended to provide better financial support during rehabilitation. Other reporting on the same Cabinet meeting describes this as a subsistence allowance: the monthly subsistence allowance for 634 displaced families was doubled from Rs 5,000 to Rs 10,000 for a year.

Farm loan waiver in seven villages

In a related decision on the same package, the government approved a farm loan waiver of up to Rs. 1.5 lakh for eligible farmers under the second phase of land pooling in seven villages across Guntur and Palnadu districts, with June 1, 2026 fixed as the cutoff date for determining eligibility under the APCRDA Act. The waiver itself covers loans taken before a separate cutoff: the waiver applies only to loans taken before January 6, 2026. The CRDA Commissioner has been given implementation authority — the CRDA Commissioner has been authorized to frame the necessary implementation guidelines.

Phase-2 land-pooling footprint

The seven villages covered by the loan waiver and revised annuity fall under the second phase of pooling notified in late 2025. Land pooling is being carried out in Palnadu district's Amaravati mandal, covering 1,965 acres in Vaikuntapuram, 1,018 acres in Peddamadduru, and 1,879 acres of patta land plus 46 acres of assigned land in Yandrayi village, with Karlapudi and Lemalle contributing 2,603 acres of patta land and 51 acres of assigned land. In Tulluru mandal of Guntur district, the state is pooling 1,448.09 acres of patta land and 2.29 acres of assigned land in Harichandrapuram, and 5,886.18 acres of patta land in Pedaparimi and another village, taking the total across seven villages to 16,562.52 acres of patta land and 104.01 acres of assigned land.

Other approvals in the same package

The Cabinet also cleared related land matters tied to the second phase of pooling. Compensation for 307 acres of assigned (inam) lands was approved, with Rs 159 crore to be paid to the endowments department. To strengthen the capital city's institutional ecosystem, the cabinet approved APCRDA land allotments for a large aquarium, the national fisheries development board, the Isha Foundation, the Art of Living Foundation and the CII Global Leadership Center.

Practical effect

For farmers who have already pooled land or sign fresh agreements, the revision means higher guaranteed annual cash flow while their reconstituted plots are developed, plus a defined ten-year escalation path rather than a flat rate. The loan waiver and higher rehabilitation grant are targeted relief measures meant to remove specific financial pressure points — outstanding crop loans and post-displacement living costs — that officials say have slowed farmer consent in the seven newly notified villages. The government believes these measures will strengthen farmer confidence, speed up land pooling, and support the rapid development of Amaravati as Andhra Pradesh's capital.