Transfer of Development Rights (TDR )

Transferable Development Rights (TDR)

Transferable Development Rights (TDR) means an award specifying the Built-Up Area (BUA) an owner of a site or plot can either sell or utilize - in-situ / elsewhere, in lieu of the land foregone on account of surrendering / gifting land free of cost to the ULB’s (Municipal Body, Urban Improvement Trust, Urban Development Authority), required to be set apart for public purpose as per the Master Plan or for road widening, recreational use zone, etc. The award is in the form of a TDR Certificate issued by the Competent Authority. The TDR Certificate inter-alia should mention the area surrendered and the cost of that area as per the circle rate. These certificates are regulated under the building Bye-Laws or in conjunction with TDR guidelines framed by State Governments from time-to-time.

TDR is a technique of land development, which separates the development potential of a particular parcel of land from it and allows its use elsewhere within the defined zones of the city. It allows the owner to sell the development rights of a particular parcel of land to another. This entitlement is over and above the usual FSI available for receiving plot in accordance with the prevailing laws and regulations, which entitles a landowner to construct additional built‐up area on his existing building or vacant land. This is generally used for redevelopment of inner-city zones and for reconstruction/ re‐ development and has been tried out in numerous cities/ States. However, it has its prospects and consequences as experienced from the implementation in various cities. For instance, unbridled pooling of TDRs could damage the urban form, TOD strategies, quality of public spaces, etc. Hence it should be used carefully within a predefined spatial framework.