Mumbai is set to get new transferable development rights (TDR) policy, the changes are said to be done in Mumbai’s Development Plan. Mumbai’s Development Plan which has been in government’s pipeline for a long time now, which will allow utilisation of the full development potential of a plot without the loading of the TDR.
According to a report in Indian Express, the government will now permit a free interchange between additional floor space index (FSI), which is available to builders upon payment of a premium to the municipality, and the TDR component. The Maharashtra government will approve this new policy in next few days.
Mumbai is a gold mine for real estate developers. For them, even few hundred square metres of additional lands means crores of money, so the TDR certificates are equivalent to blue-chip stocks. TDR certificates are issued to private landowners or developers for land surrendered to the municipality for developing a public reservation or road widening, or when they agree to rehouse slum dwellers or project-affected persons free-of-cost.