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Thursday, December 28, 2017

TN set to amend Town and Country Planning Act to make provision for TDR

C SHIVAKUMAR @ Chennai:
Tamil Nadu government is set to amend Tamil Nadu Town and Country Planning Act by introducing additional provision for Transferrable Development Rights (TDRs) to make it legally binding.

It is learnt that the state government will be amending Section 35 of the Act where in the clause pertaining to Transfer of Development Rights will be included.

Initially, the government had framed rules for implementing TDR but it did not have statutory backing.

Transferrable Development Rights (TDRs) allow governments to acquire land in exchange for development rights. These rights allow for properties or land to be developed in other areas of the city and those having TDRs can use the rights themselves or sell it to developers.

Since the state did not have legal backing for the sale of TDRs, the proposed amendment in the Act could facilitate cheap and rapid land acquisition for the government while redirecting development to other to other under-developed areas of the cities or important urban goals like affordable housing.

TDR, which first emerged as a policy in United States in the 1960s, was implemented in the state by creating a separate TDR division in Chennai Metropolitan Development Authority. However, without legal backing and infrastructure and a common platform to trade TDRs, it had few takers forcing to the government to rethink on the feasibility of having a separate TDR department in CMDA.

A former planner said that TDRs can be made successful if it can be made accessible and a comprehensive database is established of TDR issued and used. It has been suggested that the government should establish a TDR market or bank to buy hold and resell TDRs.
There is lack of mechanism of trade and price discovery as Chennai is not a active TDR market and there are no special incentives for builders, sources revealed.
Even the policy of TDR is a document driven one where in the loss of development right certificate would result in owner losing the entitlement to certificate.
The move to amend the Act comes after Tamil Nadu Slum Clearance Board (TNSCB) is wooing real estate developers to market 20,520 square metre of special transferrable development rights to build homes.

Under the slum clearance board scheme, TNSCB will identify private developer to provide alternate accommodation to slum dwellers proposed to be evicted through a bidding process and enter into an agreement with private developer for the provision of alternate accommodation to slum beneficiaries.

The developer who has obtained the special TDR may utilise it himself or transfer it after getting clearance from Member Secretary of Chennai Metropolitan Development authority.

Factfile:
1. Transferable development Right first emerged as a policy in the US in 1960s. It was used to preserve certain parts of city which had historic buildings
2. In India, TDR was dirst implemented in Mumbai in 1991 to acquire land for public amenities like gardens and roads.
3. Between 1991-2004, more than 21,00000 square metre of land was surrendered through TDR in MUmbai for road development and slum redevelopment
4. In Bangalore, TDR was initated in 2005 to help government with large scale infrastructure projects
5. Transferrable Development Rights was issued in Second Master plan and it has few takers in Chennai. It is learnt it is due to lack of mechanism of trade and price discovery as Chennai is not a active TDR market

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