TDR (Transferable Development Rights)

Madhya Pradesh Transferable Development Rights (TDR) Rules, 2018. These are rules framed under the MP Town & Country Planning Act, 1973.

What is the MP TDR (Transferable Development Rights) – Rules, 2018

1. Purpose of TDR

   • TDR is a mechanism to compensate landowners when their land is used/surrendered for public purposes (e.g., roads, open spaces, public utilities). Instead of or in addition to cash compensation, landowners get “development rights.”

   • These “development rights” are in the form of built-up area / Floor Area Ratio (FAR), which can be used later by the landowner or sold to someone else.

2. When TDR is Issued

   • Applicable to land that is reserved in the Master / Zonal Development Plan for public purposes (like roads, school, health centre, open space).

   • The landowner must surrender the land to the competent authority to get a TDR Certificate.

   • The surrendered land should be “free from encumbrances” (i.e., legally clear).

3. TDR Certificate

   • Once the land is surrendered, the authority issues a Development Rights Certificate. This certificate states: how much built-up area (in sq. m) the owner gets, where (which zone / plot) these rights can be used, etc.

   • The certificate is transferable: the holder can transfer (sell) all or part of the rights to another person.

   • There is a validity period for the certificate (in older rules). According to some sources, the TDR certificate's validity is 10 years in MP.

4. Where TDR Can Be Used (“Receiving Areas”)

   • The certificate holder uses these development rights on “receiving plots”. These are plots where the TDR can be utilized in addition to the base FAR but within a maximum permissible FAR (which includes base + TDR + possibly premium) as per local building / planning norms.

   • The rules require that the receiving plot should abut a road of at least 12 meters for TDR to be used there.

5. Calculation of TDR

   • The “credit” (i.e. how much built-up area is given) is typically proportional to the area of land surrendered.

   • There is also a “multiplication factor” used to calculate the buildable area given in exchange for surrendered land. According to a government summary: Y × (surrendered area), where Y is a factor (not less than 2).

   • This means for every 1 sq m of land given up, the land-owner may get at least 2 sq m (or more) of built-up development rights (depending on Y) in the TDR certificate.

6. TDR Portal

   • MP has a TDR portal where these TDR certificates are managed.

   • The portal is also meant to make the system more transparent: landowners who give land for public projects can see / use / sell their TDR rights.

   • According to recent reports, if a landowner surrenders land “free of cost,” they are entitled to “development rights of at least double the area surrendered.”

7. Limitations / Ineligibility

   • TDR cannot be granted on land or buildings that are historically important.

   • The landowner needs to ensure proper fencing (1.5 m barbed wire, as per rules) before surrendering.

Why TDR (2018) in MP Is Important

For Landowners: It gives an alternative to cash compensation — more flexible and potentially more valuable if development rights are high.

• For the Government / Planning Authorities: Helps in acquiring land for public amenities (roads, infrastructure) without a huge direct cash burden — they instead give development rights.

• For Developers / Builders: They can buy TDR certificates and use them to build more (higher FAR) in receiving zones, which encourages denser, planned development.

• For Urban Planning: Encourages a smarter use of land. Public-purpose land is used for what’s needed (roads, open spaces), and development rights are redistributed to where they can be utilized.