Transferable Development Rights:


i. Floor Space Index ( FSI) refers to the quotient obtained by dividing the total Built- Up Area (BUA) of all floors by the plot area. For example, the FSI of 1 on a 100 sqm plot translates to 100 sqm of BUA.

ii. Floor Area Ratio (FAR) is similar in concept to the FSI. The FSI value of 1 can be represented as 100 % FAR.

iii. Development Control Regulations (DCR) of the city govern the building envelope based on FSI, maximum ground coverage of the building, maximum building height or number of floors, minimum building setbacks and margins, minimum open spaces, minimum parking, and other requirements.

iv. Base FSI is the basic FSI permitted by the competent authority as a matter of right without any cost.

v. Chargeable/Premium FSI is the FSI available by additional payment to the competent authority as per the applicable rules.

vi. Maximum permissible FSI is the FSI that includes the base and chargeable FSI.

vii. TDR certificate/ Development Rights Certificate (DRC) is a certificate issued by the competent authority to an owner or a lessee of the land on surrender of the gross ‘area’ of the land which is required for public purpose. Such ‘area’ of land must be free of cost and free from all encumbrances. The certificate comprises of the details like FSI/FAR credit in square meters of the built-up area to which the owner or lessee is entitled, the place from where it is generated and the rate of that plot as prescribed in the Annual Statement of Rates issued by the Registration Department or other concerned department for the concerned year.

viii. ‘Sending zones’ means a zone of land or part thereof which is proposed to be surrendered to the competent authority in lieu of a TDR certificate. Similarly, ‘Originating plot’ means the plot in which the development right originated due to surrender of ‘Area’.

ix. ‘Receiving zone’ means a zone of land or part thereof over which the TDR certificate is proposed or permitted to be utilized.

Meaning of TDR – Making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of land, so that he can use extra built up area either himself or transfer it to another in need of extra built up area for an agreed sum of money. / “TDR is a voluntary incentive based program that allows landowners to sell their development rights from their land to a developer or other development rights from their land to a developer or other interested party who then can use these rights to increase the density of development at another designated location”.


  1. TDR means an award specifying the Built-Up Area (BUA) an owner of a site or plot can either sell or utilize – in-situ / elsewhere, in lieu of the land foregone on account of surrendering/gifting land free of cost to the ULB’s (Municipal Body, Urban Improvement Trust, Urban Development Authority), required to be set apart for public purpose as per the Master Plan or for road widening, recreational use zone, etc. The award is in the form of a TDR Certificate issued by the Competent Authority. The TDR Certificate inter-alia should mention the area surrendered and the cost of that area as per the circle rate. These certificates are regulated under the building Bye-Laws or in conjunction with TDR guidelines framed by State Governments from time to time.
  2. The basic premise of the transferable development rights method is FSI credit which can be traded with real estate developers or any third person for monetizing its value. The method works when the developers are able to use these FSI credits to construct additional floors in the receiving area than would otherwise be permitted, thereby recovering the cost of purchasing TDRs.

Purpose of TDR – For public purposes like road widening, parks, playgrounds, schools etc

Benefits of TDR –

1)         Alternative method of land acquisition

2)         Process of land acquisition act is comparatively lengthy.

3)         Easy to get land without any litigation.

Development right certificate – (DRC) –

If the owner of any land which is required for road widening for the formulation of new road or development of parks, play grounds, civic amenities etc. those proposed in the plan shall be eligible for the award of TDR. Such award will entitle the owner of the land in the form of a development right certificate (DRC), which he may use it for himself or transfer to any other person.

error: Content is protected !!
Scroll to Top