The municipal administration department in Telangana has taken a significant step to boost the usage of transferable development rights. They have mandated that 10% of the built-up area in high-rise buildings above 10 floors must utilize TDRs.
Creating Market Demand for TDRs
This move aims to create market demand for TDRs across the state. Currently, landowners face challenges when they receive TDRs instead of cash compensation for land acquisition. Government agencies like GHMC provide these rights for projects such as road widening.
However, finding buyers for TDRs proves difficult. Landowners often sell their development rights at low prices due to limited demand. The new mandate seeks to change this situation by ensuring a consistent market for TDRs.
How TDRs Work
Transferable development rights allow builders and developers to gain additional built-up space. They can use these rights when constructing new projects. The system benefits landowners who surrender their property for public projects.
Expanding TDR Applications
The state government now plans to issue TDRs for land acquisition involving water bodies and nalas. This approach helps tackle development challenges effectively. Special Chief Secretary Jayesh Ranjan explained the details in a recent government order.
TDRs will cover private land parcels affected by full tank levels, maximum flood levels, and buffer zones around water bodies. The Musi riverfront development project will utilize this mechanism extensively.
Clearance Requirements
The government order outlines specific clearance procedures for TDR issuance. Officers at the level of executive engineer in the irrigation department must provide approvals. Additional collectors from the revenue department also need to clear compensation claims.
For lakes with finalized FTL notifications, no objection certificates become unnecessary. However, land parcels exceeding one acre require prior approval from the state government before TDR issuance.
Benefits for Landowners
Landowners who surrender their land voluntarily receive attractive benefits. They qualify for setback relaxations on their remaining property. Alternatively, they can obtain permission for an additional floor in their proposed buildings.
This incentive structure encourages cooperation with government development projects. It makes land acquisition smoother for important infrastructure work.
Current TDR Challenges
Presently, TDRs struggle to find acceptance in the market. Property owners face difficulties monetizing these development rights. The new mandate creates guaranteed demand through high-rise construction requirements.
Builders must now incorporate TDRs into their projects when constructing buildings above ten floors. This ensures a steady market for landowners holding these rights.
Future Implications
The policy shift represents a strategic approach to urban development. It balances infrastructure needs with fair compensation for landowners. By linking TDR usage to high-rise construction, the government creates sustainable demand.
This system benefits multiple stakeholders. Landowners receive value for their surrendered property. Developers gain additional construction rights. The government advances important projects without immediate cash outlays.
The focus on water body development and nala widening addresses critical urban infrastructure needs. Hyderabad and other Telangana cities will see improved flood management and enhanced public spaces.
