Urbanization in India has been on the rise, especially in states like Haryana, where rapid infrastructure growth demands innovative solutions. One such solution is the Transferable Development Rights (TDR) policy, which offers landowners a way to contribute to critical infrastructure projects while retaining economic benefits. In this blog post, we’ll take a detailed look at Haryana’s new TDR policy, how it works, and how it aims to facilitate seamless urban development.
What is Transferable Development Rights (TDR)?
TDR allows landowners to surrender their land for public infrastructure projects like roads, green belts, and public spaces, in exchange for a TDR Certificate. This certificate can be sold or utilized by the landowner for future development purposes within the same urban area. Essentially, it’s a way for landowners to receive compensation for their contribution to urban infrastructure without losing their ability to profit from their land in the future.
But what does this mean for you as a property owner or developer in Haryana?
Why Haryana’s TDR Policy is a Game Changer
The recent update to the TDR policy, superseding previous instructions from 2015 and 2016, brings significant changes that aim to make the process simpler, transparent, and more efficient. Here’s how the updated policy stands out:
1. Simplified Application Process with Online Integration
The Haryana Town and Country Planning Department is committed to digitalizing the TDR process. From application submission to issuance and utilization, everything will be handled online. This not only speeds up the process but ensures greater transparency for all stakeholders.
However, during the transition to the full online system, manual applications will still be accepted, with the assurance that they will be integrated into the digital system once it’s up and running.
2. Clear Eligibility and Land Use Guidelines
The updated policy clearly outlines which types of land can be eligible for TDR issuance, based on their designation in the development plan. Some examples include:
• Sector Roads & Green Belts (SRGB)
• Sectoral Plan Road Pockets (SPRP)
• EDC Works Sites (EDWS)
• Public & Semi-Public Zones (PSP)
• Open Space Zones (OS)
These are critical land uses needed for urban infrastructure development, and landowners whose properties fall within these categories are eligible to apply for TDR certificates.
3. Phased Implementation for Efficient Development
To avoid fragmented land parcels that are not contiguous and can’t be utilized effectively, the TDR policy will be implemented in phases. This approach ensures that land aggregation for large-scale infrastructure development remains efficient. Additionally, if sufficient land isn’t available under the TDR scheme, land pooling (like the E-Bhoomi system) can be adopted to meet the requirements.
4. Notional Land Calculation for Fair Compensation
The policy introduces a standardized way to calculate notional land for TDR certificates. By using collector rates and land use indices, Haryana ensures that the compensation for landowners is consistent and fair, regardless of the location within the development plan.
The Application Process for TDR: Step-by-Step
If you’re a landowner looking to avail the benefits of the TDR policy, here’s a quick rundown of the steps involved:
1. Submit Your Application
To start, landowners must apply through the Director, Town & Country Planning in Haryana. The application should include the following documents:
• Ownership and title verification documents
• Scrutiny fees (Rs. 10 per sqm)
• Indemnity bond and undertaking to transfer land to the government
2. Scrutiny and Provisional Offer
Once submitted, the authorities will review your application. If everything checks out, a provisional offer will be issued to the landowner. This will give the applicant 90 days to complete the formal land transfer process.
3. Issuance of TDR Certificate
After the land is transferred, the TDR certificate is issued. This certificate can be split into smaller units (each 50 sqm of built-up area) to make it easier to trade and utilize within the same development plan.
Key Features of the TDR Certificate
• FAR (Floor Area Ratio) Benefit: Every TDR certificate carries an FAR of 2.0, meaning that developers and property owners can build more on their land by using the TDR certificate.
• Split Certificates: TDR certificates can be split into 50 sqm units, making them more flexible and easier to transfer between parties.
What Does This Mean for Developers?
If you’re a developer in Haryana, the TDR policy offers exciting prospects. By purchasing and utilizing TDR certificates, you can increase the FAR and density of your projects. The maximum FAR for various types of projects (like Group Housing or Commercial Developments) can be increased by as per policy, depending on the nature of the development.
Fees and Charges: What You Need to Know
As with any government policy, there are fees associated with the TDR process:
• Scrutiny Fees: Paid by the landowner when applying for the TDR certificate.
• Utilization Charges: Developers using TDR certificates to increase FAR will need to pay charges like Infrastructure Augmentation Charges (IAC-TDR) and External Development Charges (EDC).
• Non-Refundable: Once the scrutiny fee is paid, it cannot be refunded, so make sure your application is complete and in order.
Transfer and Utilization of TDR Certificates
The TDR certificates are transferable, meaning landowners can sell their certificates to developers or other landowners within the same development plan. This feature opens up opportunities for greater market liquidity and encourages the development of underutilized urban land.
Here’s how the transfer process works:
• Online Transfer Mechanism: All transfers must be done through the department’s online portal, which will ensure transparency and minimize errors.
• Flexibility for Developers: Developers can use TDR certificates to increase the built-up area on their projects, ensuring a smooth integration of additional FAR.
The Future of Urban Development in Haryana
Haryana’s revised TDR policy is a step toward more organized and sustainable urban development. By allowing landowners to voluntarily contribute to public infrastructure in exchange for development rights, it creates a win-win situation for both property owners and the government.
For developers, this is an opportunity to expand projects with increased FAR, while also contributing to the growing infrastructure needs of the state. For landowners, it’s an avenue to monetize land that might otherwise be non-profitable, contributing to the betterment of the community.
As Haryana continues to grow and modernize, the TDR policy will play a crucial role in ensuring that development is well-planned, organized, and fair to all parties involved. Whether you’re a landowner or a developer, now is the time to explore the potential of TDR certificates and make the most of this evolving opportunity.
