Delhi's New Transit-Oriented Development Policy Unlocks Affordable Housing
In a significant move to expand affordable housing in the national capital, the Ministry of Housing and Urban Affairs (MoHUA) issued a gazette notification on Tuesday detailing the Transit-Oriented Development (TOD) Regulations and Charges for 2026. This policy introduces uniform TOD charges and reduces plot size requirements to accelerate sustainable urban growth.
Key Policy Changes and Charges
Under the new regulations, TOD charges have been fixed at a uniform rate of Rs 10,000 per square meter, applicable across all localities in Delhi. This standardization aims to simplify the development process and encourage private sector participation. The policy follows recent approvals by the Delhi Development Authority (DDA), which reduced the minimum plot size for TOD projects from 10,000 square meters to 2,000 square meters.
Additionally, the permissible floor area ratio (FAR) has been increased to 400, with provisions to extend it up to 500 upon payment of additional charges. The policy mandates that at least 65% of the total FAR be allocated to residential units of up to 100 square meters, promoting affordable housing. A minimum of 10% must be reserved for commercial and community facilities, while the remaining 25% can be used for larger housing units, offices, guest houses, and studio apartments.
Expanded Scope and Implementation
Significantly, the TOD framework now includes land pooling zones, low-density residential areas, and unauthorized colonies—previously excluded—provided the plot size is at least 2,000 square meters and located on roads at least 18 meters wide. The policy covers plots within a 500-meter radius of regional and interstate transit stations, such as Namo Bharat and railway stations, as well as plots 500 meters on either side of metro corridors.
Union Minister Manohar Lal Khattar emphasized that the new policy will accelerate TOD implementation in Delhi, promoting sustainable mobility and optimized land use through compact, mixed-use development leveraging public transit infrastructure. DDA Vice-Chairman N Saravana Kumar noted that the previous policy required a minimum plot area of one hectare, limiting projects to a few locations like Sarai Kale Khan and Jaitpur. With the reduced plot size, more private entities can now undertake mixed-use development.
Infrastructure and Economic Impact
The changes are expected to open up approximately 207 square kilometers for planned development and redevelopment. Officials estimate that nearly 21,000 hectares along Delhi Metro corridors will fall under TOD, with redevelopment of even 20% potentially unlocking significant economic activity. To enhance walkability, the policy includes provisions for underground or elevated pedestrian walkways connecting TOD plots to transit stations.
Eligible plots will be designated as 'TOD plots', eliminating the need for land-use change approvals. Developers will pay TOD-related charges distributed among agencies like DDA, the Municipal Corporation of Delhi (MCD), and the Delhi Jal Board (DJB) for infrastructure augmentation. For a base FAR of 400, charges will be paid to DDA at the uniform rate, with additional charges for FAR between 400 and 500. Collected funds will be placed in a dedicated escrow account, ring-fenced for area improvement and infrastructure augmentation within the same locality.
Approval Process and Future Revisions
Charges must be deposited at the time of submitting TOD schemes through MCD's online building plan approval system. These include:
- Rs 3,000 towards water and sewer infrastructure (DJB)
- Rs 3,000 towards plan sanction and approvals (MCD)
- Rs 1,500 towards conversion charges (DDA)
- Rs 2,500 towards infrastructure development under the urban development fund
No separate fee will be charged for leasehold-to-freehold conversion. In cases of plot consolidation, leasehold parcels must clear all pending dues, including ground rent and penalties, and be free from encumbrances such as loans or litigation before availing TOD benefits. TOD charges may be revised periodically and will remain applicable until further orders by MoHUA.
A committee chaired by the DDA Vice-Chairman, comprising officials from stakeholder agencies, will ensure seamless approvals. Applicants can apply at a single point, with approvals granted within seven days. CM Rekha Gupta highlighted that this move will make a larger number of plots eligible for redevelopment and accelerate TOD-based projects amid rising housing demand in Delhi.
