Telangana revises building permit regulations; TDR compulsory for high rise constructions in Hyderabad

Hyderabad: Telangana government has amended the rules for acquiring building permissions, making Transferable Development Rights (TDR) mandatory for building high-rises in Hyderabad’s Core Urban Region (CUR), which stretches from Greater Hyderabad Municipal Corporation (GHMC) to Outer Ring Region (ORR).

The Government Order (GO) No 16 issued by Municipal Administration Department, requires builders constructing beyond 10 floors to pay 10 percent of built-up area, from the 11th floor to the top, in the form of TDR.

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The government has directed GHMC, HMDA, and other organizations to implement the regulations immediately.

New regulations:

To protect and develop lakes and rivers, the government has decided to enhance TDR compensation to acquire patta lands which are located within water bodies and its regulated zones.

If the GHMC, HMDA, or Musi Riverfront Development Corporation Limited (MRDCL) need to develop these lakes and rivers, the government has decided to provide Transferable Development Rights (TDRs) at 200 percent of the value of the land within the Full Tank Level (FTL) of the lakes, 300 percent for lands in the buffer zone, and 400 percent if lands outside the buffer zone also need to be acquired.

If landowners give land within the lakes and rivers areas to the government free of cost, relaxations will be provided in setback and height regulations for construction projects undertaken by these organizations.

What is TDR?

In the Greater Hyderabad area, a system is in place to compensate landowners for land acquisition not with cash, but through Transferable Development Rights (TDR).

During the previous government's tenure, TDR certificates worth over ₹10,000 crore were issued. The increased supply of these certificates in the market led to a drop in their value.

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Consequently, land acquisition efforts initiated by the GHMC for roads and various development projects over the past four years have not been successful. Landowners now only prefer cash in compensation, creating obstacles for public works.

The government has issued an order amending construction permits to increase the demand for TDR and facilitate land acquisition through this method.