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The central government has revised its Transit Oriented Development (TOD) policy to increase affordable housing supply along metro and rapid rail corridors. The updated framework mandates that 65% of the built-up area be used for smaller housing units, while allowing higher density and mixed-use development. It also reduces minimum plot size and introduces faster approvals through a single-window system. The policy aims to improve land use efficiency, strengthen last-mile connectivity, and promote compact urban growth near transit networks, especially in cities like Delhi.
The central government has notified changes to its Transit Oriented Development (TOD) policy to boost housing supply and improve planned development along metro and rapid rail corridors. The revised framework focuses on increasing density near transit networks while ensuring a higher share of affordable housing. Advertisement
Under the policy, areas within 500 metres on both sides of metro corridors will be designated as TOD zones. These zones will allow integrated residential and commercial development, with the aim of creating compact urban clusters around public transport systems.
A key provision mandates that 65% of the permissible floor area ratio (FAR) must be used for residential units with a built-up area of up to 100 square metres. This condition is expected to increase the supply of smaller homes in well-connected urban locations, where housing demand remains strong.
The remaining 35% of FAR can be used for commercial and other uses, but with limits to ensure residential development remains the primary focus. The policy removes earlier land-use restrictions, allowing mixed-use projects within TOD zones, which is expected to improve project viability and support balanced development.
To encourage wider participation, the minimum plot size requirement has been reduced from 1 hectare to 2,000 square metres. At the same time, higher construction density has been permitted, with FAR going up to 500 depending on road width. This change is likely to make more projects financially viable and enable better utilisation of land parcels near transit corridors.
The framework also introduces a single-window clearance mechanism to speed up project approvals. A designated committee will review proposals and is expected to clear them within 60 days, addressing delays that developers faced under earlier rules.
A TOD charge of INR 10,000 per square metre has been fixed for developments under this policy. The collected funds will be kept in a dedicated escrow account and used only for infrastructure improvements within TOD zones, including civic services and connectivity upgrades.
The policy also focuses on improving last-mile connectivity by allowing direct pedestrian access to metro stations through walkways, including underground and elevated links. Officials indicated that the aim is to reduce dependence on private vehicles and promote walkability in high-density areas.
The revised framework is expected to bring a large urban area under TOD planning. In Delhi alone, around 207 square kilometres is likely to be covered under these zones. Earlier TOD policies introduced under the city's master plan saw limited implementation due to stricter norms and higher entry barriers. The current changes attempt to address those issues by simplifying rules and making projects more feasible.
Source PTI
5th Jun, 2025
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