Aasha Realtors : Govt. Cuts TDR Along Narrow Roads

The State Government has issued orders mandating that Transfer of Development Rights (TDR), loaded on to a certain plot, can no longer be constant but has to be proportionate to the width of adjoining roads.

Developers have criticized the notice issued by the state urban development department on April 30.

They say it will impact redevelopment of a majority of buildings in Mumbai as most flank narrow roads.

TDR is a kind of floating FSI (Floor Space Index) that determines the extent of construction allowed on a plot. It is generated when the owner of a plot, which is reserved for a certain public amenity such as roads, hands it over to the BMC. He is compensated for the loss of his plot by way of TDR that is equivalent to the plot handed over.

TDR is also generated in case of slum redevelopment projects. It can be sold in the realty market and developers buying it can use it to construct more built-up area.

The concept was introduced in the 1991 Development Control Rules (DCR) which allowed for a TDR of 1 to be used in the suburbs, irrespective of the road width, over and above the base FSI of 1.

The new rules mandate that those who purchase TDR cannot load it on plots adjoining roads that are less than 9 meters in width while a TDR of 1 is applicable for only larger plots adjoining roads having 18 meters to 24 meters of width.

TDR has been slashed to 0.50 for plots lining roads that are between 9 meters and 12 meters in width and to 0.75 in case of plots lining roads 12 meters to 18 meters in width.

On the upside, developers who have projects bordering wide roads, having width of more than 24 meters, will now get a much higher TDR of 1.25 to 1.50.

Sunil Mantri, builder and president of the National Real Estate Development Council, said that about 70 to 80 per cent of buildings in Mumbai are along narrow roads.

“Especially in case of old and dilapidated buildings of South Mumbai, plots are adjoining roads less than 9 meters in width. These projects will be unable to use TDR at all now. This will render the projects unviable as there would not be enough built-up area for rehabilitation of tenants as well as for the developers’ sale area,” he said.

State government officials said the move was aimed at easing congestion along narrow roads by allowing less construction.

However, the upper limit on total FSI is not applicable in case of special projects such as redevelopment of slums, cased structures, housing board colonies, and several others. These projects can continue to use a high FSI of up to 4 or above.

On the other hand, those who generate TDR and sell them stand to gain with the new rules in place.

Those handing over their plots, reserved for any public amenities, to the BMC, will now get double the TDR that they were eligible for before.