18/11/2020 - Government Policies

KEY POINTS

·       Transfer of Development Rights (TDR) is a zoning technique used to permanently protect land with conservation value (such as farmland, community open space, or other natural or cultural resources) by redirecting development that would otherwise occur on this land (the sending area) to an area planned to accommodate growth and development (the receiving area).

·       It is a win-win deal, where property owners get timely and market-based returns from their property, and urban local bodies get space to provide facilities without huge expenditure for a larger public good. By virtue of being a voluntary option, it also protects the rights of property owners.

·       This versatile tool can be used for incentivising the conservation of heritage landmarks, expansive touristic lakes and so on as well. It can also be offered as a sop towards slum redevelopment and affordable housing projects.

·       The Greater Hyderabad Municipal Corporation has pioneered in taking advantage of this transformation and taken a step forward by launching an online TDR bank, wherein the entire summary of the transaction on the DRC file and the available balance is dynamically updated and put forth in public domain. This makes the whole process more transparent.

·       India celebrated when Ahmedabad was announced its first World Heritage City by the UNESCO in 2017. Today, the city government offers a unique variant of TDR, the ‘Tradable Development Right’, as an incentive for the owners of heritage structures notified in the heritage conservation plan.

·       More than 2,500 heritage building owners have the option to avail the benefits under the scheme. These buildings/structures have been classified as ‘highest heritage value’ and ‘high and moderate heritage value’ by the government. These buildings are offered TDR on the basis of the utilised Floor Space Index.

·       Undoubtedly, it is a fiscal tool and needs to be handled very carefully. It will take skilled planners, professional staff, awareness among citizens and the private sector to channelise TDR into urban reality. Indeed, all urban local bodies already mired under financial stress, human resource deficits and huge development pressure might not have adequate resources, to design and implement a suitable TDR product.

·       India is at the brink of a massive transition from being predominantly rural to half urban in the next two decades. Our 7,000-odd cities are minting over 70% of the country’s GDP, whilst dismally crumbling under the lack of basic infrastructure and inefficiently used costly urban land.

·       Economy rewards timely interventions, and this is an opportune moment to take strategic decisions and make our cities globally-competitive, liveable and economically-productive. TDR perhaps is a win-win deal.

Please review

Sir, 19th nov both questions are same under different topics. I think wrongly uploaded.

Transferable development rights (TDR) is a zoning tool that urban local authorities use to preserve farmland and areas of cultural or historical importance by allowing real estate development in some other area.

>>> TDR : A robust policy tool to address India’s urban infrastructure voids

- Under the TDR route, govt aquires land from the land owners in exchange for development rights that are transferred to the landowners.

- The govt can reassign itself as a facilitator of the development of urban areas  by providing infrastructure like wider roads, water, drainage, and electricity and other civic essentials such as educational institutions, hospitals, markets etc., at the aquired land.

- At times, more people would now move to newly developed localities, easing the city’s current pressure on living space, traffic, drainage, and water.

- The TDR scheme is found to have effectively addressed the long, complicated, and costly process of land acquisition in urban areas for public purpose. 

- The greatest advantage of TDR is its flexibility in use — it can either be used by the landowner on the remaining portion of the land after the acquisition or be utilised on any other property of personal choice. It can also be traded to other parties for an agreed sum of money.

- Many developing States such as Maharashtra and Karnataka have leaped ahead in development through the TDR route, where govts provides a win-win situation to all stakeholders by issuing DRCs

(Development Rights Certificates).

>>> Suggestions :

- Though highly innovative, extra caution has to be put in before implementing TDR. 

- All the records of rights generation, beneficiaries, transfer, and utilisation of rights should be kept intact as it poses a good chance for discrepancies and unrestricted and unauthorised constructions under the behest of ‘rights.’ 

- Lastly, people may be imparted with good knowledge about the advantages, procedures, and effective usage of TDRs.

>>> Conclusion : 

For India to leap onto the double-digit growth trajectory and achieve the $5 trillion GDP mark, "sustainable and innovative urbanization" — grounded in strong policy—needs to take high priority.

Kindly provide feedback  .  Thank you Sir