AP MAUD to rationalise parking norms in industrial areas to cut costs

Amaravati: The Government of Andhra Pradesh has unveiled a major policy reform aimed at enhancing ease of doing business and accelerating industrial growth across the State.

The Municipal Administration and Urban Development (MAUD) Department has issued new orders rationalising parking requirements in industrial areas—significantly reducing compliance costs and promoting deregulation.

According to S Suresh Kumar, Principal Secretary to the Government, MAUD, the initiative is designed to remove bottlenecks that have long hindered production, especially for Micro, Small and Medium Enterprises (MSMEs), while cutting operational costs. By simplifying and relaxing these regulations, Andhra Pradesh is setting a benchmark in investor-friendly policy and creating an exceptional environment for industrial development.

The key policy changes driving industrial growth include:

Reduced parking norms for industrial units

The mandated parking area for industrial units has been halved from 20 to 10 per cent. This brings Andhra Pradesh’s norms in line with Telangana’s for standalone units, improving competitiveness and allowing better utilisation of industrial land.

Shared parking for industrial layouts

For layouts approved by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), centrally managed common parking will be planned at the layout stage. Individual units within these layouts will not be required to provide separate parking if shared facilities meet demand, enabling maximum use of land for core industrial purposes and lowering business overheads.

Broader regulatory reforms

Alongside parking changes, the government is also easing other land-use rules—reducing side and rear setbacks, removing minimum plot size requirements for industrial purposes and relaxing or eliminating height restrictions. These adjustments encourage more efficient land use and support vertical development where suitable.

Direct benefits for MSMEs

The reforms target structural constraints that raise production costs, particularly for MSMEs, thereby enabling them to grow, expand and make a greater contribution to the State’s economy.

The policy is the result of a detailed review of parking norms across states and an in-depth analysis of development control regulations by the Directorate of Town and Country Planning (DT&CP). It also aligns with the Scheme for Special Assistance to States for Capital Investment (SASCI) 2025-26, which encourages rationalising parking norms for industrial and commercial developments to spur capital investment.

This step forms part of Andhra Pradesh’s broader deregulation efforts across 23 identified Priority Areas.