The Uttar Pradesh Housing Department has directed 29 development authorities to identify highly urbanized zones where landowners can surrender their land in exchange for Transfer of Development Rights (TDR). The cities of Lucknow, Kanpur, and Varanasi will be the first to implement the TDR concept. Under this system, landowners will receive TDR certificates in return for voluntarily surrendering their land for public purposes. The certificates can then be used to avail increased Floor Area Ratio (FAR) in developing or under development locations. The move aims to promote planned urban development and ease congestion in highly urbanized areas across the state.
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In a bid to address urban congestion and promote planned development, the Uttar Pradesh housing department has issued a directive to 29 development authorities to identify highly urbanized zones where landowners surrendering their land will receive transfer of development rights (TDR).
Officials have revealed that the cities of Lucknow, Kanpur, and Varanasi will be the first to delineate these zones and implement the TDR concept. Transfer of Development Rights, commonly known as TDR, was first introduced by the Mumbai municipal corporation in the 1990s, allowing builders to plan projects with additional built-up area in exchange for surrendered land.
The areas identified as highly congested, such as Hazratganj, Naka Hindola, and Alambagh in Lucknow, will be designated as sending zones, while the developing or under development locations will be categorized as receiving zones. Under this system, landowners can voluntarily surrender their land for public purposes, and in return, they will receive a TDR certificate issued by the competent authority. This certificate can then be utilized to avail increased Floor Area Ratio (FAR) for the receiving plot.
Nitin Ramesh Gokarn, Additional Chief Secretary of the housing department, emphasized the urgency of implementing urban reforms within highly urbanized parts of the state, with a deadline set for January 15, 2024. Gokarn stated that the development authorities have been given a fortnight to delineate the applicable zones in the cities.
Several developed cities in India, including Mumbai, Bengaluru, Chennai, Hyderabad, and Ahmedabad, have successfully utilized the TDR system to secure land without direct capital investment for public infrastructure, such as building roads, parks, schools, open spaces, parking lots, and green belts.
To facilitate the efficient functioning of TDR, the certificates will be dematerialized, converting physical shares into electronic balances, and will be traded over an exchange. The minimum plot size eligible for TDR will be 50 sqmt, and the development rights can be utilized in group housing, institutional, commercial, or mixed-use projects.
While the TDR bye-law was introduced in Uttar Pradesh in August last year, its operationalization and framework for usage by development authorities are yet to be finalized. The move aims to pave the way for planned urban development and enhance the quality of life for citizens in highly urbanized areas across the state.
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