Andhra Pradesh moves on 20,378 acres of central salt lands, sets up a committee to settle lessee payments

The Andhra Pradesh government has taken a step on roughly 20,378 acres of Central government salt lands across the state, which it wants for port projects. The Infrastructure and Investments Department has set up a committee, convened by the CEO of the Andhra Pradesh Maritime Board (APMB), to work out the amounts to be paid to existing lessees.

The report gives the figure as 20,377.73 acres of salt pan lands spread across the state. It says the Central Department for Promotion of Industry and Internal Trade (DPIIT) has issued a policy that prompted the state to act. Taking the lands over means the lease amounts of current lessees must be refunded under government guidelines. The new committee is meant to finalize that amount. The Infrastructure Department had already formed a high-level committee on payments to lessees.

The policy backdrop

Salt lands fall under the Salt Commissioner’s Organisation, which is under DPIIT. Guidelines issued in 2024, after Cabinet approval, allow these lands to be transferred to Central public sector enterprises, state governments and their entities for ports and industrial purposes at 50% of the circle rate. Under those guidelines, allottee states cannot pass on ownership of concessional land to any other entity, though they may sub-lease plots for uses such as industrial plots. If public bodies decline, the lands can be auctioned to private parties.

About 60,000 acres of salt land exist across states including Maharashtra, Andhra Pradesh, Tamil Nadu, Odisha, Gujarat and Karnataka. Andhra Pradesh holds the largest share, at 20,716 acres in 2024 figures.

Port link

Andhra Pradesh has been pressing for these lands for its port-led growth. Chief Minister N Chandrababu Naidu asked the Commerce Minister in July 2024 to transfer salt lands for port-led industrial development at registered value. In March 2026 the Centre approved the transfer of 385.24 acres at the Naupada Salt Factory to the APMB for the Mulapeta Port, which resolved a shortage of contiguous land for the project’s road and rail links. In July 2026 the state also asked for support in allocating salt lands for future port expansion.