GOVERNMENTOFANDHRAPRADESH

ABSTRACT
BuildingsPrivateBuildingsoccupiedbyGovernmentDepartmentsRevisionofrates
ofrentforthePrivateBuildingstakenonleasebytheGovernmentDepartmentsOrders
Issued.

FINANCE(FMUTR&B)DEPARTMENT

G.O.Ms.No.Dated:06032016.
Readthefollowing:
1.G.O.Ms.No.601,G.A.(Accommodation)Dept.,Dt.29081979.
2.Govt.Memo.No.791/Accom.A2/821,G.A.(Accom.A)Dept.,Dt.30091982.
3.G.O.Ms.No.269TR&BDept.,Dt.06081985.
4.Cir.Memo.No.133/Accom.A2/962,G.A.(Accom.A)Dept.,Dt.29031996.
5.G.O.Ms.No.35,Fin.&Plg.(FWEBSPWD)Dept.,Dt.27021997.
6.Govt.Memo.No.127/R&E/97Fin.&Plg.(FWR&E)Dept.,Dt.09061997.
7.G.O.Ms.No.63,Fin.(EXPR.PW)Dept.,Dt.18042011
8.G.O.Rt.No.2120,Fin.(EBSXI)Dept.,Dt.28072015
oOo
ORDER:
Governmenthaveissuedinstructionsfromtimetotimeabouttheprocedureand
normsfortakingPrivateBuildingsonleasebyGovernmentDepartmentsandfixationof
rent thereof. But it was noticed that rent fixation in practice has become quite
cumbersome and leading to wasteful expenditure. Therefore, Government have issued
comprehensiveordersintheG.O.5threadabovefixingtherentforthePrivateBuildings
taken on lease by the Government Departments duly classifying the areas in to six
categories.AgainintheG.O.7threadabove,rentsforthePrivatebuildingswarerevised
asdetailedbelow:
Sft.inRupees.
Sl.No
1.
2

3.
4.
5.

ClassifiedArea
GreaterHyderabadMunicipalCorporation
GreaterVisakhapatnamMunicipalCorporation
andCorporationofVijayawada,Guntur,
TirupathiandWaranga
AllotherCorporationsandSpecialgradeand
SelectiongradeMunicipalities
AllGradeIMunicipalities
AllotherMunicipalities&MandalHeadquarters

Rs.10.00
Rs.7.00
Rs.5.50
Rs.4.50
Rs.3.00

6.
2.

AllotherRuralareas

Rs.2.50

Theaboverateswerefixedduringtheyear2011andtherehasbeenconsiderable

increaseinthecostoflandandbuildingsoveraperiodof5years.Itwasexpressedby
variousDepartmentsthattheBuildingownersarenotcomingforwardnowtoleaseorto
rent their Buildings for the Government Departments at the rates prescribed by the
GovernmentintheG.O.7threadabove.Moreover,theBuildingsownersarealsopressing
tovacatetheBuildingsalreadyoccupiedbytheGovernmentDepartmentsortoenhance
the rent as per the local market valuations of the buildings. Number of proposals from
variousDepartmentsarealsocominguptothisDepartmentforenhancementoftherent.
3.

Keepinginviewofcircumstancesexplainedabove,thereisanimperativeneedto

modifytheratesfixedintheG.O.7threadabove,duetosteepincreaseinthecostofthe
lands and buildings in various classified areas in the State. In the G.O.8th read above
Government have constituted a committee for review and recommendations of
appropriate terms and conditions for lease of Private buildings by the Government
Departments.Thecommitteehaverecommendedthefollowingrevisedratesforfixation
ofrentsofPrivatebuildingstakenonleasebytheGovernmentDepartments.

Sl.No
1.

ClassifiedArea
a).CorporationofVijayawadaandGuntur

Recommended for
fixationofrentper
Sft.inRupees.
Rs.15

b). Corporation of Vijayawada and Guntur

buildings having all facilities such as power Rs.18.00
Backup, AC, WIFI Network facilities for the
entirepremises
2.
3.
4.
5.
6.

GreaterVisakhapatnamMunicipalCorporation
CorporationofTirupathiandallother
Corporations
SpecialGradeandSelectionGradeMunicipalities
andAllGradeIMunicipalities
AllotherMunicipalities&MandalHeadquarters
AllotherRuralAreas

Rs.12.00
Rs.10.00
Rs.8.00
Rs.6.00
Rs.5.00

4.

Governmentaftercarefulexamination,hasdecidedandherebyordertorevisethe

rent fixed in G.O.7th read above, for the Private Buildings taken on lease by the
GovernmentDepartmentsasdetailedbelow:
Sl.No
1.

ClassifiedArea
a).CorporationofVijayawadaandGuntur

Revisedrate
Rs.15.00

b).CorporationofVijayawadaandGunturbuildings Rs.18.00
having all facilities such as power Backup, AC,
WIFINetworkfacilitiesfortheentirepremises
2.
3.
4.
5.
6.

5.

GreaterVisakhapatnamMunicipalCorporation
CorporationofTirupathiandallotherCorporations
SpecialGradeandSelectionGradeMunicipalities
andAllGradeIMunicipalities
AllotherMunicipalities&MandalHeadquarters
AllotherRuralAreas

Rs.12.00
Rs.10.00
Rs.8.00
Rs.6.00
Rs.5.00

The above amount would be payable only for net usable area which cannot be

morethannetcarpetareaplus10%.
6.

The requirement of the Building by any office is to be advertised in the District

editionoflocalnewspaperwithlargecirculation,indicatingrequirementofspacewhich
willbedecidedaspertheR&Bnorms.
7.

Inresponsetotheaboveadvertisement,Buildingownerhavingvacantspacehave

toquoteaspecificleaserentpermonththeywantasrent.
8.

A team consisting of the Head of the Office in need of the Building space and

localEE/Dy.EE/AEofR&BDepartmentwillcheckthesuitabilityofthebuildingstarting
fromthelowestoffer.Ifduetoanyreasontoberecordedinwritingthelowestofferors
Building is not suitable, the second lowest offerors premises will be inspected and
evaluatedforselection.

9.

Once the Building is selected accepting the rent within the maximum ceiling

indicatedinpara(4)above,itcanhaveanescalationfactorof5%forblockofeverytwo
yearsthereafter.
10.

All Heads of Departments are therefore requested to inform all the Heads of

Offices under their control to follow the above revised rates for fixing up of rent of
Buildingstobetakenonhire.Therevisedratesareapplicablewitheffectfromthe1stof
March,2016.

Dr.P.V.RAMESH
PRINCIPALFINANCESECRETARY

To,
AlltheHeadsofDepartments/AllCollectors.
TheC.E.,R&B,Hyderabad.AlltheDepartmentsofSecretariat.
ThePAO,Hyderabad.
TheDirectorofTreasuriesandAccounts,Hyderabad.
TheDirectorofWorksAccounts,A.P.,Hyderabad.
TheAG,AP,Hyderabad.
SF/SC.
Copyto:
G.A.(Accommodation)Dept.
FORWARDEDBYORDER
SECTIONOFFICER