Guidelines for “Transfer of Development Rights “

What Is TDR

Transfer of Development Rights (TDRs) is a planning tool used since the 1920’s. First in America and later in different countries to preserve land where development is undesired, and promote density in specific targeted areas.

The concept is quite simple: Take parcels that are not using their total development rights, and allow them to sell and transfer those unused rights to another parcel that wants to exceed its permitted density restrictions.

How is TDR Generated

  • TDR is generated on plots reserved for public amenities like roads, playgrounds, gardens, schools, markets etc.
  • TDR can be an effective tool to simultaneously limit development in valuable open space areas while stimulating additional development in areas well suited to higher densities.
  • Local Governments can use TDR to direct development in specific zones to preserve farming areas, forested areas, heritage areas etc. by allowing its owners to give up their rights to develop these spaces commercially in lieu of TDR.

Unused TDR transferred to another building



Benefit of TDR in planned development

The TDR program allows the landowners to separate the right of ownership of the land from the right of its development. A farmer can continue to farm in his land, while giving up his developmental rights to a property developer as TDR for a consideration. Landowners benefit by being compensated for placing land use restrictions on their land, keeping farmland prices affordable for agricultural uses, and removing land uses that impede farming.

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Development Rights Certificate

A Development Rights Certificate (DRC) is a certificate issued by the Municipal Commissioner to individuals who are granted TDR. The certificate states that the FSI credit in square meter of the built-up area to which the owner or lessee of the reserved plot is entitled, the place and user zone in which the development rights are earned, and the areas in which they may be utilized. The property owner may use DRC for himself or transfer it  to any other person.

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In additional TDR also gets generated during Slum Rehabilitation Scheme on account of additional FSI that slum projects in Mumbai receive. Developers may sell