<p>The state government may offer additional floor area ratio (FAR) as an incentive to those having old Transferable Development Rights (TDR) in order to bring them under the revised TDR scheme. <br /><br /></p>.<p>The Urban Development Department (UDD) has proposed to offer an additional FAR of 1.33 to those having the old TDR. The move is aimed at making good the loss that old TDR holders would incur by migrating to the new TDR regime, which the government is yet to implement, official sources in the department said. <br /><br />Those having the old TDR, especially builders, had complained that they would incur huge losses if they are brought under the new regime. Many builders and real estate developers have invested heavily in the old TDR which was considered lucrative, the sources said. <br /><br />The FAR is the ratio of a building’s total floor area to the size of the plot upon which it is built. It is fixed by the respective urban local bodies as per zoning regulations. <br /><br />Under the old scheme, 1.5 times of the value of acquired land was given as TDR, whereas 2.5 times will be the TDR value in the new regime. Besides, there was no restriction on using the TDR anywhere in a city under the old scheme. But as per the revised scheme, the TDR issued on the outskirts of the city (where land prices are lower) cannot be used in the central business district (where land prices are higher).<br /> <br />Moreover, the old scheme was not linked to the guidance value of land (government-fixed value), whereas the new TDR will be linked to the guidance value. In other words, the TDR value under the new regime will remain the same irrespective of the place of use. It’s no wonder that builders have been pressuring the government to make good the loss for them to come under the new regime. <br /><br />According to the sources, town planning experts had suggested to the government to bring the existing TDR (issued in the old scheme) under the new regime. The Bruhat Bengaluru Mahanagara Palike (BBMP) had issued an estimated 15.75 lakh square metres under the old TDR scheme. Of this, only about 5 lakh square metres have been used so far. <br /><br />The new rules should apply to the old TDRs or else they would serve no purpose. The TDR scheme provides for acquiring private land for public projects in urban areas, the sources said. The old TDR was widely misused. Hence, the government is coming out with the revised TDR scheme, they added.<br /><br />Department gives note of dissent<br /><br />The Department of Parliamentary Affairs and Legislation (DPAL) has objected to the proposal on additional FAR. It is learnt to have informed the Urban Development Department (UDD) that there is no provision for the incentive in the Karnataka Town and Country Planning (Amendment) Act, 2015, that seeks to introduce the new TDR regime. Still, the UDD proposed it in the rules. The government may have to amend the Act to provide the incentive, official sources said. <br /><br /></p>
<p>The state government may offer additional floor area ratio (FAR) as an incentive to those having old Transferable Development Rights (TDR) in order to bring them under the revised TDR scheme. <br /><br /></p>.<p>The Urban Development Department (UDD) has proposed to offer an additional FAR of 1.33 to those having the old TDR. The move is aimed at making good the loss that old TDR holders would incur by migrating to the new TDR regime, which the government is yet to implement, official sources in the department said. <br /><br />Those having the old TDR, especially builders, had complained that they would incur huge losses if they are brought under the new regime. Many builders and real estate developers have invested heavily in the old TDR which was considered lucrative, the sources said. <br /><br />The FAR is the ratio of a building’s total floor area to the size of the plot upon which it is built. It is fixed by the respective urban local bodies as per zoning regulations. <br /><br />Under the old scheme, 1.5 times of the value of acquired land was given as TDR, whereas 2.5 times will be the TDR value in the new regime. Besides, there was no restriction on using the TDR anywhere in a city under the old scheme. But as per the revised scheme, the TDR issued on the outskirts of the city (where land prices are lower) cannot be used in the central business district (where land prices are higher).<br /> <br />Moreover, the old scheme was not linked to the guidance value of land (government-fixed value), whereas the new TDR will be linked to the guidance value. In other words, the TDR value under the new regime will remain the same irrespective of the place of use. It’s no wonder that builders have been pressuring the government to make good the loss for them to come under the new regime. <br /><br />According to the sources, town planning experts had suggested to the government to bring the existing TDR (issued in the old scheme) under the new regime. The Bruhat Bengaluru Mahanagara Palike (BBMP) had issued an estimated 15.75 lakh square metres under the old TDR scheme. Of this, only about 5 lakh square metres have been used so far. <br /><br />The new rules should apply to the old TDRs or else they would serve no purpose. The TDR scheme provides for acquiring private land for public projects in urban areas, the sources said. The old TDR was widely misused. Hence, the government is coming out with the revised TDR scheme, they added.<br /><br />Department gives note of dissent<br /><br />The Department of Parliamentary Affairs and Legislation (DPAL) has objected to the proposal on additional FAR. It is learnt to have informed the Urban Development Department (UDD) that there is no provision for the incentive in the Karnataka Town and Country Planning (Amendment) Act, 2015, that seeks to introduce the new TDR regime. Still, the UDD proposed it in the rules. The government may have to amend the Act to provide the incentive, official sources said. <br /><br /></p>
