The Bharatiya Janata Party (BJP)-led Maharashtra government has doubled Transfer of Development Rights (TDR) — development rights issued to a land owner as compensation for space ceded to the government for amenities — across the state, barring Mumbai. The idea is to bring TDR at par with the increased monetary compensation provided under the new Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, and to make TDR an attractive compensation tool for land acquisition.
“Earlier, the ratio of TDR generated was 1, which means for a 100-square-metre plot, the TDR generated was 100 square metres. With the new policy, the TDR generated will be two times the area of surrendered land in non-congested areas and three times that of surrendered land in congested areas for land free of cost and all encumbrances,” an official from the state urban development department said.
TDR can be generated during government acquisition of plots under reservation for public purposes such as new roads and road-widening, or amenities as proposed in the area’s development plan. Other than for plots under reservation, TDR can also be generated to compensate for unutilised Floor Space Index in a heritage property or a precinct or for the construction of housing for slum-dwellers.
“The new land acquisition Act paved the way for a much higher monetary compensation, which made it difficult for local bodies to take over reserved plots for development. Local bodies don’t necessarily have money, but they can issue development rights. We hope this will speed up the development of reserved plots. It can also keep property prices in check due to increased availability of built-up area,” the official from the state urban development department said.
The government has also provided for the availability of additional or incentive TDR of 20 percent of surrendered land for land owners who submit proposals within one year of the government’s notification. Similarly, those who submit proposals within two, three and four years will get incentive TDR of 15 percent, 10 percent and 5 percent, respectively. However, the state has decided to link the permissible utilisation of TDR to the width of the road across the state. Accordingly, a developer can load the maximum amount of TDR on plots facing a road that is over 30 metres wide.
For plots up to 1,000-square-metres, developers can load a TDR of 0.2 if the width of the road fronting the plot is between 9 and 12 metres, and 0.3 if the road width is higher than 12 metres. For plots between 1,000 to 4,000-sqm, the permissible TDR usage will be 0.4 if the road width is 9-12 metres, 0.5 for a road width of 12-18 metres, 0.6 if it is 18-24 metres, 0.8 for 24-30 metres and 1 if the road width is higher than 30 metres. Similarly, for larger plots over 4,000-sqm, the permissible TDR usage will be 0.4 for a road width of 9-12 metres, 0.65 for 12-18 metres, 0.9 for 18-24 metres, 1.15 for 24-30 metres, and 1.4 for plots facing roads wider than 30 metres.
Besides, officials say, the government has also linked the permissible usage of TDR with the land rates of the areas the built-up area is to be used in to ensure balanced development. The permissible TDR usage will be lower in areas with higher land rates and vice-versa, officials said.
The government had proposed a similar TDR policy, linking usage of the compensatory development rights to the road width, for Mumbai. However, it faced strong opposition, with real estate players saying it would stall redevelopment given the city’s narrow roads. “We are still considering the policy for Mumbai and making alterations to it as per the suggestions we have received,” the urban development department official said.