9.2. Transfer of Development Rights (TDR)

Issuing TDR is another means to improve the financial viability of the projects. TDR refers to making available a certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land, so that he can either use the extra built up area himself or transfer it to another in need of the extra built up area for an agreed sum of money. However, only urban/local Authorities should issue TDRs to land owners in lieu of cash consideration for acquisition of land. Haphazard transfers of TDRs would have an adverse impact on land use and real estate prices.