An expert committee constituted by the State government to look into anomalies in the Transferable Development Rights (TDR) scheme is likely to recommend reduction of Floor Area Ratio (FAR) for building construction and increase the value of TDR to 2.5 times the cost of land (guidance value) acquired, from the present 1.5 times, in order to make the scheme attractive.

Currently, maximum FAR of 3.25 is permitted in the State. Special FAR up to 4 is permissible along the Namma Metro corridor in Bengaluru City. But, nobody has used the FAR of 4 so far.

The expert committee is of the view that limiting the permissible FAR to 1.5 will create a demand for TDR. The committee is headed by Director of Town and Country Planning and comprises 18 members. The panel has finalised its report which will be submitted to the government soon, official sources said.

The ratio of floor area to plot area is FAR. It specifies the maximum number of area of floors that can be built on a given area of land. FAR is fixed based on the width of the road that the plot is facing and also size of the plot. TDR is a scheme for awarding certain amount of additional built up area in lieu of the area relinquished or surrendered by the land owner. 

TDR was introduced to enable Urban Local Bodies (ULBs) to easily acquire land for development projects such as road widening. But the scheme met with stiff resistance from land owners, especially in Bengaluru, as there was no demand for TDRs.

Of the 15.75 lakh sq metres of TDR issued by the Bruhat Bangalore Mahanagara Palike (BBMP), only about 5.29 lakh sq metres have been utilised. This is mainly because the permissible FAR is on the higher side for constructing high-rises, officials said.

Instead of 3.25 FAR, the committee, sources said, would recommend introduction of what is called “premium FAR” up to 1, which can be bought from respective ULBs. Over and above, the committee would recommend allowing FAR up to 1 for those who buy TDR. This will not only bring additional revenue to the ULBs, but also make the scheme more attractive, officials explained.

Increase in TDR value

The committee is likely to recommend increasing the TDR value to 2.5 from the present 1.5, in order to bring it on a par with the compensation stipulated in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Besides, the panel would recommend fixing TDR not only for land, but also for the building, if demolished for the acquisition. Currently, TDR is calculated only for the land component of a property. It may also recommend to set up a separate authority to help people trade TDR, sources said.

When contacted, Director of Town and Country Planning S B Honnur refused to divulge any information on the committee’s report. He only said that the report will be submitted to the government.  
Selling points  Reducing maximum FAR from 3.25 to 1.5 for building construction.
Increasing TDR value to 2.5 times the value of land, from 1.5.
Introducing premium FAR up to 1, which can be bought from ULBs.
TDR to be calculated for the building portion also, along with the land.
Setting up an authority to help people trade TDR.