Karnataka to build platform for trading TDRs

Karnataka to build platform for trading TDRs

Photo for representation.

The Karnataka government plans to digitise transferable development rights (TDRs) which permits builders to go for additional construction. The government will also very soon enable trading of these TDRs on an online platform.

"We have engaged NCDEX eMarkets Ltd (NeML), an electronic web-based online commodities spot market and services company, to develop an online platform to enable the trade of TDRs like shares. We will be signing an agreement with them next week," said E V Ramana Reddy, Additional Chief Secretary, IT/BT & ST Department, Government of Karnataka.

Addressing the annual conference of Confederation of Real Estate Developers Association of India (CREDAI), Karnataka Chapter, here on Thursday, he said the customised solution will be put in place very soon. This platform could be used by real estate developers and builders, who are in possession of TDRs to trade them on the online platform. The new system is intended to help the industry to develop marketable properties.

NeML will develop a customised solution for the government. This platform could be used by city corporations and BBMP in the state besides builders and developers. This will help in bringing the entire data regarding TDRs in the public domain.

The TDR holders will be free to fix their price and sell on the platform, a builder said.

Reddy said the government is also putting in place an automatic building plan approval mechanism in the BBMP limits. Currently, the system is in place across 151 urban local bodies in the state.

The state government is also coming out with a new transit-oriented development plan for Bengaluru to promote the development of properties all along the Metro rail line. The government is planning to change the land use policy along the metro line, Reddy added.

Global cities like Hong Kong, Tokyo and many other cities have effectively put into use such plans. Globally, it is a common practice to cross-subsidise loss-making metro projects through revenues from property development in and around metro stations.