NALA Conversion (Agricultural to Non-Agricultural): Complete Guide
Last Updated: February 2026 | Editorial Policy
If you own agricultural land in Telangana and want to build a house, start a business, or develop a layout, you must convert your land from Agricultural to Non-Agricultural use. This legal process is called NALA Conversion (Non-Agricultural Land Assessment).
Without NALA conversion, any construction on agricultural land is illegal and can be demolished by revenue authorities.
1. What is NALA Conversion? (NALA మార్పిడి అంటే ఏమిటి?)
Every piece of land in Telangana has an official classification in the revenue records:
- Agricultural (Wet/Dry): Land designated for farming and cultivation
- Non-Agricultural: Land designated for residential, commercial, or industrial use
NALA conversion changes this classification officially in the ROR records. After conversion, the land is assessed under Non-Agricultural Land Assessment tax rates instead of agricultural tax rates.
తెలుగులో:
వ్యవసాయ భూమిని ఇల్లు కట్టుకోవడానికి లేదా వ్యాపారం కోసం వాడాలంటే, ముందుగా ప్రభుత్వ అనుమతి తీసుకోవాలి. దీన్నే NALA (నాలా) కన్వర్షన్ అంటారు. ఈ అనుమతి లేకుండా ఏ నిర్మాణం చేసినా అది అక్రమం.
2. When is NALA Conversion Required?
You need NALA conversion in these scenarios:
| Scenario | NALA Required? |
|---|---|
| Building a house on farmland | Yes |
| Opening a shop/godown on farmland | Yes |
| Developing a residential layout | Yes (plus HMDA/DTCP approval) |
| Setting up a factory/industry | Yes (plus TSIIC clearance) |
| Selling agricultural land as a plot | Yes (before layout approval) |
| Continuing to farm on agri land | No |
3. NALA Conversion Process (Step-by-Step)
Step 1: Verify Land Eligibility
Before applying, ensure your land is eligible for conversion:
- Must be Patta land (private ownership) — NOT government, assigned, or Wakf land
- Should NOT be in the Prohibited (22A) List
- Should not fall in any FTL (Full Tank Level) or buffer zone
- Master Plan / Zoning should allow the proposed land use
Step 2: Prepare Required Documents
- Application form for NALA conversion
- Pattadar Passbook (latest Green Passbook)
- ROR 1B printout from Dharani
- All Link Documents (chain of sale deeds)
- EC for the last 13 years minimum
- Aadhar card of the applicant
- Survey sketch / Tippon of the land
- No-Objection Certificate from co-shareholders (if applicable)
Step 3: Apply Through Dharani / Collectorate
The application is typically filed at the District Collector's Office or through the Dharani Portal (if the module is available). The application is then forwarded to the Mandal Revenue Officer (MRO) for field verification.
Step 4: Field Verification & Public Notice
The MRO or designated officer will:
- Visit the land to verify physical features
- Check that the proposed use doesn't violate any regulations
- Issue a public notice for objections (usually 15-30 days)
Step 5: Pay Conversion Fee & Receive Order
After approval, you must pay:
- Conversion Fee: A one-time payment based on the market value and extent of the land
- Annual NALA Tax: An ongoing yearly tax assessed at non-agricultural rates
After payment, the Collector's Office issues a NALA Conversion Order/Proceedings. The ROR 1B will be updated to reflect the non-agricultural classification.
4. NALA కన్వర్షన్ ప్రక్రియ (తెలుగు)
వ్యవసాయ భూమిని ఇల్లు కట్టుకోవడానికి మార్చాలంటే ఈ స్టెప్స్ ఫాలో అవ్వండి:
- భూమి అర్హత చూడండి: మీ భూమి ప్రైవేట్ పట్టా భూమి అయి ఉండాలి. ప్రభుత్వ, అసైన్డ్ భూములు అనర్హం.
- డాక్యుమెంట్లు సిద్ధం చేయండి: పాస్ బుక్, ROR, EC, సేల్ డీడ్స్, ఆధార్ కార్డు.
- కలెక్టర్ ఆఫీసులో దరఖాస్తు: అర్జీ పెట్టుకోండి. MRO వెరిఫికేషన్ కోసం వస్తారు.
- పబ్లిక్ నోటీసు: 15-30 రోజులు ఎవరైనా అభ్యంతరాలు ఉంటే తెలపవచ్చు.
- ఫీజు కట్టండి: కన్వర్షన్ ఫీజు మరియు NALA ట్యాక్స్ చెల్లించి ఆర్డర్ తీసుకోండి.
5. Common Issues & Solutions
Land in Master Plan Green Zone
If your land falls in a "Green Zone" or "Agricultural Zone" in the HMDA/DTCP Master Plan, conversion may be denied or limited. Check the zoning classification before applying.
NALA Pending during Registration
Sometimes land is sold as "Non-Agricultural" but NALA conversion was never completed. Always verify the Nature of Land in the ROR 1B. If it still says "Wet" or "Dry," NALA has NOT been done.
Unauthorized Layouts
Many "layouts" near Hyderabad are sold without NALA conversion or HMDA/DTCP approval. Buying plots in such layouts is risky — the entire layout can be declared illegal, and you may lose your investment.
Frequently Asked Questions
No. Assigned land cannot be converted to non-agricultural use. It must remain agricultural as per the conditions of assignment.
Yes. Once land is converted to non-agricultural status and the conversion order is obtained, it remains non-agricultural permanently in the records.
Yes. You can apply for partial NALA conversion. A survey will be conducted to demarcate the portion being converted, and a new sub-division number may be created.
NALA changes the land classification from agricultural to non-agricultural. Layout approval (from HMDA/DTCP) gives permission to divide the land into plots with proper roads and infrastructure. You need NALA first, then Layout approval.
Building on agricultural land without NALA is illegal under revenue laws. The structure can be demolished and you may face penalty. Banks also require NALA order for loans on such property. NALA లేకుండా నిర్మాణం అక్రమం; ప్రభుత్వం కూల్చవచ్చు; బ్యాంక్ లోన్ కోసం NALA ఆర్డర్ అవసరం.
Conversion near highways or in green zones may have restrictions. Check HMDA/DTCP master plan and zoning. Some areas may be reserved for agriculture. హైవే/గ్రీన్ జోన్ దగ్గర పరిమితులు ఉండవచ్చు; మాస్టర్ ప్లాన్ చెక్ చేయండి.
After conversion, land is assessed under Non-Agricultural Land Assessment (NALA) tax — an annual tax paid to the revenue department. Rate varies by location and use. NALA మార్పిడి తర్వాత నాన్-వ్యవసాయ భూమి పన్ను (వార్షికం) చెల్లించాలి.
Check ROR 1B / Pahani on Dharani. If "Nature of Land" shows Non-Agricultural or the land has a NALA order number, conversion was done. If it still shows Wet/Dry, NALA is not done. ధరణిలో ROR 1B లో నేచర్ ఆఫ్ ల్యాండ్ నాన్-ఎగ్రికల్చరల్ అయితే NALA అయింది.
Typically: application form, Pattadar Passbook, ROR 1B, sketch, identity proof, and fee. The MRO may ask for no-objection from other departments. అప్లికేషన్, పాస్ బుక్, ROR 1B, స్కెచ్, ID ప్రూఫ్, ఫీజు; MRO ఇతర శాఖల నో-ఆబ్జెక్షన్ కోరవచ్చు.
Yes. You can sell agricultural land as agricultural; the buyer continues to use it for farming. If the buyer wants to build later, they must get NALA. Selling as "plot" or for layout without NALA is illegal. వ్యవసాయ భూమిని వ్యవసాయంగా అమ్మవచ్చు; కట్టడానికి కొన్నవారు NALA తీసుకోవాలి.
Why NALA Conversion Matters (NALA మార్పిడి ఎందుకు ముఖ్యం)
English: Without NALA, any construction on agricultural land is illegal and can be demolished. Banks do not sanction loans for building on unconverted agricultural land. Layouts sold without NALA approval are risky — the entire layout can be declared illegal. Always verify in ROR 1B that the land is non-agricultural before buying a "plot" in a layout. NALA conversion typically takes 30–90 days; apply well before you plan to start construction.
తెలుగు: NALA లేకుండా వ్యవసాయ భూమిపై ఏ నిర్మాణమూ చట్టవిరుద్ధం; ప్రభుత్వం కూల్చవచ్చు. NALA ఆమోదం లేకుండా అమ్మే లేఅవుట్లు ప్రమాదకరం. లేఅవుట్ లో "ప్లాట్" కొనే ముందు ROR 1B లో భూమి నాన్-ఎగ్రికల్చరల్ అని ధృవీకరించండి.