Noida, Ghaziabad Eye Big Revenue Jump From Transit Oriented Development (TOD) Policy
The Transit Oriented Development (TOD) policy, highlighted by Finance Minister Nirmala Sitharaman in her Budget speech, is expected to bring massive transformation to the urban landscape of Noida and Ghaziabad. With several projects lined up in these cities over the next few years, the implementation of their own transit policies in 2022 has set the stage for significant development.
Encouraging Properties Along Transit Routes
Under the TOD policy, areas within 500m of intra-city mass transit systems, such as metro corridors and bus routes, are considered TOD zones in the case of UP’s transit policy. Additionally, for intercity transit projects like rapid rail and metro, the TOD zone expands to 1.5km on both sides of the corridors. The primary intention of this policy is to promote properties, both residential and commercial, along the transit routes, facilitating easy access to public transport for residents.
Noida’s Focus: International Airport and Allied Transit Systems
The TOD policy holds special significance for Noida due to the upcoming international airport in Jewar and other allied transit systems connecting it with neighboring cities. Along with the airport, various projects like metro, expressway, pod taxis, and rapid rail are being developed. The implementation of the TOD policy acts as a catalyst for the comprehensive development of associated infrastructure. The increase in the floor area ratio (FAR) and expeditious license acquisition process for projects within TOD zones will provide great incentives to developers.
Ghaziabad’s Development Focus on Rapid Rail Section
For Ghaziabad, the focus of development lies in the 17km operational rapid rail section, with plans to extend the Namo Bharat corridor from Sarai Kale Khan in Delhi to Meerut by next year. With the inclusion of mixed land use in TOD zones, Ghaziabad expects to generate an annual revenue of Rs 1,500 crore from these projects. The increased FAR associated with TOD zones is predicted to provide a significant boost to revenue propelling growth in the city’s infrastructure.
Revenue Opportunities in TOD Zones
The transit projects in Noida and Ghaziabad offer considerable revenue opportunities in the form of stamp duty, external development charge, FAR, purchasable FAR, and developing commercial hubs within 1.5km of the rapid rail lines. NCR Transport Corporation and Ghaziabad Development Authority (GDA) will receive revenue contributed by these areas, which will be used for further developmental projects.
Increase in FAR and Its Impact on Revenue Generation
The increase in FAR, coupled with tax and bill revenues, is projected to raise revenue generated around transit corridors by 60-70%. This increase in revenue will be particularly noteworthy in areas where commercial and residential development is concentrated, primarily near the stations. Planned development along the Yamuna Expressway will witness significant impacts from the TOD policy, further accelerating growth.
TOD Policy to Drive Growth in Real Estate Sector
With higher FAR and additional incentives, real estate developers are expected to capitalize on the TOD concept, focusing on creating transit-friendly properties in Noida and Ghaziabad. The influx of investment and resultant development will not only enhance connectivity but also shape the urban fabric of these cities.
Conclusion
The implementation of the Transit Oriented Development (TOD) policy in Noida and Ghaziabad is poised to bring remarkable growth and urban development to these cities. The proximity to transit systems and the promotion of mixed land use will elevate the quality of life for residents while fostering economic and infrastructural advancements. The revenue boost, coupled with increased FAR, will encourage real estate developers to tap into the opportunities presented by the TOD policy, ultimately shaping the future urban landscape of Noida and Ghaziabad.
