Balkum, Kolshet best in TDR generation in the last decade

THANE: For a city growing at a rapid pace, the Transfer of Development Rights (TDR) scheme hasn't really taken off in Thane with limited regulatory control and a wide demand and supply gap leading to its sporadic misuse. A look at the last 15 years of data shows that the Thane Municipal Corporation (TMC) has issued development rights certificate (DRC) bearing only an additional 9.73 lakh square meter of floor space index (FSI) to holders who agreed to surrender land reserved for public purposes.The demand-supply gap over the years meant the cost of TDR touched from a low of Rs 2,000 per sq ft to Rs 6,000 per sq ft across certain zones where the development rights were not being generated in ample quantity.
Unlike Mumbai, where the TDR generated has been allowed to be used only to North of the plot, the restriction in Thane has been drawn out sector-wise, with the exception of sector 5 (Kolshet, Balkum) and sector 6 (Ghodbunder, Wadavali and Kavesar), where TDR generated from any sector is allowed to be unloaded. Thane is divided into 10 sectors in its development plan (DP).
A close look at the decades' data shows maximum TDR was generated and then unloaded in sector 5 and sector 6, and Mumbra and Kausa, notorious for its building collapses. A total of 1,86,192 sq m and 2,26,108 sq m of FSI credit was issued in sector 5 and 6 respectively between 1997 and 2013. In Mumbra, Kausa and Kalva areas, TDR measuring 3,12,823 sq m was issued to developers.
Simply put, there was ample availability of open plots to here in these zones for generation of TDR and also its unloading on housing and other infrastructure projects. This, compared to the old city area (sector 1 and 2) where scant TDR was generated or unloaded over the years, leading to little development and inflated rates of TDR.
Since Thane did not have a dedicated slum rehabilitation scheme (SRA), the supply of TDR was maintained mainly through road construction works. Of the total TDR accrued, the road TDR amounted to 3,41,394 sq m of additional FSI while open spaces were acquired by handing over 3,27,769 sq m of FSI credits between 1997 and 2013.
Meanwhile, the corporation had little mechanism to check how the DRCs were being traded in the market or being unloaded by the developers. The lack of checks and balances meant a burgeoning gap between construction cost and TDR rates in the market. The trading of kaccha TDR (DRCs traded in market in anticipation of TDR likely to be generated on a plot) became rampant as a result allowing developers to raise additional floors without procuring the final TDR rights.
A case in point was the alleged that unauthorised construction of four additional floors at project Vihang Garden-B in Vartak Nagar. While Shiv Sena MLA and developer Pratap Sarnaik constructed a school for TMC in return of TDR, the accruing FSI was never handed over to him through a DRC. The floors were simply constructed in anticipation of the TDR, the MLA had contested in the court, which is still adjudicating the matter.
The trading of kaccha TDR is still rampant by smaller players who deal in trading of TDR on internet. This has also meant while very few major developers trade in TDR, the smaller ones charge arbitrary rates. "So while rates in old city areas are as high as Rs 6,000 per sq ft, in Ghodunder where TDR is generated in bulk, the rates as much lower. However, there still remains vagueness on the use and sale of TDR in the open market," said a developer who added that just like in Mumbai, the TDR scheme in Thane has not been helpful in creating any major infrastructure for the housing sector.
To streamline the TDR market, the corporation recently decided to charge a premium on the sale of DRCs by developers at the same holding an auction of generated FSI on a plot having multiple owners. "While we have little control on the trading of the instrument and its final use, these steps we hope would bring some rationality to the whole concept," said civic chief Aseem Gupta.
TDR simply means making available additional FSI to any holder or owner who relinquishes his land reserved for public purpose, such as construction of amenities or open spaces like gardens and parks. While the TDR generated could be sold in the market by the holder for an agreed sum of money, the instrument allows corporation to quickly acquire plots reserved for public purposes. The TDR bearing DRCs are allowed to be sold by the original owners, while the buyer can unload as per his use within the permitted zoning restrictions.