Dharavi Redevelopment Project: Maharashtra govt TDR rule tweaks may advantage Adani Group: Report

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Also Read: Adani to kick off Dharavi project with $1.5 billion investment The state government’s Urban Development Department has modified the rules through a notification, the report added. According to the existing rules, there is an indexation provision for the utilization of Transferable Development Rights (TDR). This means that there would not be any cap on area-specific use of the TDR.

For instance, if 1,000 square feet of TDR is generated from a particular project, there will be no restriction on its utilization in premium real estate markets such as South Mumbai. However, only 100 square feet of it is allowed to be used. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The change in rules means there will be an equal quantum of generated TDR available for use.

Hence, the total area generated out of the TDR could be utilised now in areas like south Mumbai or Vile Parle where real estate is costlier, the report said. According to the newspaper report, the notification has provision which mandates the real estate builders in Mumbai to buy first 40% of their required TDR from the Dharavi Project before utilising other TDR. The notification also allows Adani to charge up to 90% of the ready reckoner value of the receiving plot as the TDR rate.