Revision of rates of rent for the Private Buildings taken on lease by the Government Departments




GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Buildings – Private Buildings occupied by Government Departments – Revision of rates
of rent for the Private Buildings taken on lease by the Government Departments – Orders
– Issued.
-------------------------
FINANCE (FMU-TR&B) DEPARTMENT
G.O.MS.No. 37 Dated: 07-03-2016

Read the following:
1.G.O.Ms.No.601, G.A. (Accommodation) Dept., Dt.29-08-1979.
2.Govt. Memo.No.791/Accom.A2/82-1, G.A. (Accom.A) Dept., Dt.30-09-1982.
3.G.O.Ms.No.269 TR&B Dept., Dt.06-08-1985.
4.Cir.Memo.No.133/Accom.A2/96-2, G.A. (Accom.A) Dept., Dt.29-03-1996.
5.G.O.Ms.No.35, Fin. &Plg. (FW-EBS-PWD) Dept., Dt.27-02-1997.
6.Govt.Memo.No.127/R&E/97 Fin. &Plg. (FW-R&E) Dept., Dt.09-06-1997.
7. G.O.Ms.No.63, Fin. (EXPR.PW) Dept., Dt.18-04-2011
8. G.O.Rt.No.2120, Fin. (EBS-XI) Dept., Dt.28-07-2015
                      oOo
ORDER:
            Government have issued instructions from time to time about the procedure and
norms for taking Private Buildings on lease by Government Departments and fixation of
rent thereof. But it was noticed that rent fixation in practice has become quite
cumbersome and leading to wasteful expenditure. Therefore, Government have issued
comprehensive orders in the G.O. 5th read above fixing the rent for the Private Buildings
taken on lease by the Government Departments duly classifying the areas in to six
categories. Again in the G.O. 7th read above, rents for the Private buildings ware revised
as detailed below:

Sl.No      Classified Area         Sft. in Rupees.

1. Greater Hyderabad Municipal Corporation Rs.10.00

2 Greater Visakhapatnam Municipal Corporation
and Corporation of Vijayawada, Guntur,
Tirupathiand Waranga                 Rs.7.00

3. All other Corporations and Special grade and
Selection grade Municipalities        Rs.5.50

4. All Grade-I Municipalities                Rs.4.50

5. All other Municipalities &
Mandal Headquarters                                            Rs.3.00

6. All other Rural areas                       Rs. 2.50

2. The above rates were fixed during the year 2011 and there has been considerable
increase in the cost of land and buildings over a period of 5 years. It was expressed by
various Departments that the Building owners are not coming forward now to lease or to
rent their Buildings for the Government Departments at the rates prescribed by the
Government in the G.O. 7th read above. Moreover, the Buildings owners are also pressing
to vacate the Buildings already occupied by the Government Departments or to enhance
the rent as per the local market valuations of the buildings. Number of proposals from
various Departments are also coming up to this Department for enhancement of the rent.

3. Keeping in view of circumstances explained above, there is an imperative need to
modify the rates fixed in the G.O. 7th read above, due to steep increase in the cost of the
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.The committee have recommended the following revised rates for fixation
of rents of Private buildings taken on lease by the Government Departments.

Sl.No Classified Area Recommended for fixation of rent per Sft. in Rupees.
1. a). Corporation of Vijayawada and Guntur Rs.15
b). Corporation of Vijayawada and Guntur
buildings having all facilities such as power
Backup, AC, WIFI Network facilities for the
entire premises Rs.18.00
2. Greater Visakhapatnam Municipal Corporation Rs.12.00
3. Corporation of Tirupathi and all other
Corporations Rs.10.00
4. Special Grade and Selection Grade Municipalities
and All Grade-I Municipalities Rs.8.00
5. All other Municipalities & Mandal Headquarters Rs.6.00
6. All other Rural Areas Rs.5.00


4. Government after careful examination, has decided and hereby order to revise the
rent fixed in G.O.7thread above, for the Private Buildings taken on lease by the
Government Departments as detailed below:

Sl.No Classified Area Revised rate
1. a). Corporation of Vijayawada and Guntur Rs.15.00
b). Corporation of Vijayawada and Guntur buildings
having all facilities such as power Backup, AC,
WIFI Network facilities for the entire premises Rs.18.00
2. Greater Visakhapatnam Municipal Corporation   Rs.12.00
3. Corporation of Tirupathi and all other Corporations Rs.10.00
4. Special Grade and Selection Grade Municipalities
and All Grade-I Municipalities Rs.8.00
5. All other Municipalities & Mandal Headquarters Rs.6.00
6. All other Rural Areas Rs.5.00


5. The above amount would be payable only for net usable area which cannot be
more than net carpet area plus 10%.

6. The requirement of the Building by any office is to be advertised in the District
edition of local newspaper with large circulation, indicating requirement of space which
will be decided as per the R&B norms.

7. In response to the above advertisement, Building owner having vacant space have
to quote a specific lease rent per month they want as rent.

8. A team consisting of the Head of the Office in need of the Building space and
local EE/Dy.EE/AE of R&B Department will check the suitability of the building starting
from the lowest offer. If due to any reason to be recorded in writing the lowest offeror’s
Building is not suitable, the second lowest offeror’s premises will be inspected and
evaluated for selection.

9. Once the Building is selected accepting the rent within the maximum ceiling
indicated in para (4) above, it can have an escalation factor of 5% for block of every two
years thereafter.

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
Buildings to be taken on hire. The revised rates are applicable with effect from the 1st of
March, 2016.

Dr.P.V.RAMESH
PRINCIPAL FINANCE SECRETARY

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