VISAKHAPATNAM: In a significant move to support planned urban expansion, the State government has approved a large-scale land pooling initiative across Visakhapatnam, Vizianagaram, and Anakapalli districts.
As per Government Order (GO) MS No. 146 dated July 30, 2025, the Municipal Administration and Urban Development (MA&UD) Department has authorised the Visakhapatnam Metropolitan Region Development Authority (VMRDA) to implement a Land Pooling Scheme (LPS) covering 1,941.19 acres.
The initiative aligns with the NITI Aayog’s Growth Hub (G-Hub) strategy, which aims to position Visakhapatnam as the ‘Bay City’ or ‘Miami of the East. Under the broader Visakhapatnam Economic Region (VER) plan, covering nine districts, the regional economy is projected to grow from $54 billion to $135 billion by 2032.
Two key urban extensions — Vizag 2.0 (210 sq. km) and Vizag Bay City (40 sq. km) — will be developed as brownfield projects to accommodate future urban and economic growth in a structured and sustainable manner.
To support these developments, the government is investing heavily in integrated infrastructure, including the Vizag Metro Rail project. Phases 1 and 2 of the metro, spanning 77 kilometres, are scheduled for completion between 2028 and 2030. This project will connect the IT corridors and Bhogapuram International Airport. The total investment in metro rail, roads, and urban infrastructure is estimated between Rs 4,000 and Rs 5,000 crore.
The approved land pooling model, guided by VMRDA’s 2016 Land Pooling Scheme Rules, is designed as a non-debt financing method. Landowners will contribute land voluntarily, and in return, a portion of the developed plots will be allocated back to them.
VMRDA will monetise the remaining land to fund infrastructure development. The approach avoids heavy acquisition costs and fosters public-private collaboration in urban planning.
The scheme will also incorporate government and private lands near strategic corridors like the Anakapalle–Bhogapuram highway. Additionally, regularisation of eligible encroached lands will be taken up under GO Ms. No. 571 and Act 30 of 2013, with RDOs of respective districts designated as implementing authorities.
An earlier example of VMRDA’s land pooling model is the Ozone Valley LPS near Anakapalle. Though approved in 2016, the project faced delays.
To resolve the impasse, the government issued GO Ms. No. 145 on July 30, 2025. Under the revised terms, farmers who pooled 41.287 acres will now receive 1,600 sq. yards for residential use and 200 sq. yards for commercial use per acre. For 15.90 acres where prior consent was pending, VMRDA has secured fresh approvals, and landowners will receive 1,000 sq. yards residential and 200 sq. yards commercial space per acre.
VMRDA Commissioner KS Vishwanathan said the resolution benefits both the farmers and the authority.