ET explainer: TDRs, tool for structured, planned urban growth
Dharavi, spread over 600 acres of prime land in the heart of the country's commercial capital, Mumbai has intensified the discussion surrounding Transferable Development Rights (TDRs). The concept of TDRs originated in New York City in the early 1960s. While it has been utilized worldwide since then, it has garnered increased attention, particularly in major Indian cities over the past few decades.
This surge in interest is driven by the necessity for organized development to prevent unplanned and chaotic urban growth.
1. What are TDRs?
This is a planning tool to address challenges in urban development, particularly in areas where there were restrictions on construction due to environmental, heritage, or other planning considerations.
The concept evolved as a way to compensate property owners for development limitations in one location by providing them with the option to transfer their development rights to another location where additional development was encouraged.
2. How are these rights generated?
TDR is typically generated when a government or local planning authority designates certain areas as TDR zones. These zones are often areas with restrictions on development due to environmental concerns, heritage conservation, or other urban planning considerations.
These additional rights are generated by awarding additional development rights, often in the form of extra floor area ratio (FSI), to property owners in these designated zones. Property owners can either utilize these additional development rights themselves or sell them to others looking to use it elsewhere.
3. How does the TDR market function?
TDR certificates can be traded in the market, allowing property owners in high-demand areas to purchase
