The Telangana State government is on the verge of introducing a revamped policy for Transferable Development Rights (TDRs). This new approach is designed to be significantly more attractive to property owners whose land is essential for various critical infrastructure projects, including crucial road widening initiatives and the much-needed development of the state’s lakes.
Chief Minister A. Revanth Reddy has reportedly shown keen interest in overhauling the TDR policy, aiming to make the offer compelling for property owners. According to official sources, the Chief Minister has frequently highlighted this as the primary solution, especially for lake development. The proposed policy not only includes increasing TDR values but could also mandate that builders acquire TDRs to secure permissions for constructing beyond a specified number of floors.
A surge in demand for TDRs would effectively ease the financial strain associated with property acquisition. With real estate prices escalating rapidly, the government currently faces challenges in acquiring properties for large-scale infrastructure projects. The compensation rates stipulated by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, often prove insufficient to urban property owners, representing only a fraction of their properties’ true market value.
TDRs are issued as an alternative form of compensation. These rights can then be sold to builders, developers, or even individuals who wish to construct additional floors beyond the standard permissible limits within the jurisdictions of the Greater Hyderabad Municipal Corporation (GHMC) and the Hyderabad Metropolitan Development Authority (HMDA).
Under the previous policy, introduced by the erstwhile State government in 2017, TDRs were allocated at 400% for road widening projects, 200% for sites impacted by lake conservation, drains, and other water bodies, and 100% for heritage sites. However, for a considerable period after its introduction, the demand for these TDRs remained quite low.
Recently, the market for TDRs has begun to show signs of improvement, driven by the increasing number of high-rise developments. Furthermore, the government had paused the issuance of new TDRs, allowing existing allottees to command a fair price. This policy particularly impacts landowners within lake full tank levels and buffer zones, who, with the intervention of the Hyderabad Disaster Response & Asset Protection Agency (HYDRAA), are unable to sell their lake-adjacent properties and are therefore eager to monetize them through TDRs.
An anonymous official commented, “Almost all lakes incorporate private properties. If we were to issue TDRs to every single one of them, the market would be saturated, and we would find ourselves back at square one in terms of demand.”
Moreover, officials note that complex ownership disputes are hindering the government’s plans for lake development and beautification. While the previous BRS government had entrusted several lakes to various builders and corporate entities for beautification under Corporate Social Responsibility (CSR) initiatives, very few of these projects actually commenced due to strong protests from land and plot owners.
A.V. Ranganath, head of HYDRAA, acknowledges that private land within lake areas presents significant obstacles to lake development efforts. He cited Sunnam Cheruvu and Thammidi Kunta as examples where property owners successfully sought legal recourse in the High Court to protect their rights.
“Private plot owners indeed create challenges. For instance, at Nallagandla Pedda Cheruvu, the CSR agency could only undertake development on Shikham land, leaving out the private patta land,” Mr. Ranganath explained, expressing optimism that the new TDR policy will help overcome these persistent hurdles.