The new city plan has seen a shake-up in the way TDR is traded between builders and property owners. Development Plan 2034 makes it mandatory for builders who plant to use transferable development rights to buy at least 20 per cent of it from slum rehabilitation (SRA) projects.

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The move places slums at the core of the mammoth development activity envisaged in the plan. Through it, the government hopes to promote development of slum pockets within city limits governed by the Brihanmumbai Municipal Corporation (BMC). “If we don’t make this mandatory, many developers will ignore slums and focus only on reservations from where they can generate TDR,” said a senior official from the DP department. “This will force developers to take up slum redevelopment so that TDR is generated,” said the official.

TDR has also been made a core component of floor space index (FSI), which has been raised up to 3 in south Mumbai and includes a substantial share (0.84) of TDR.

The base FSI is the island city is 1.33. Another 0.83 can be bought from BMC, and the remaining 0.84 will come from TDR from SRAs projects.

To further the level the field, TDR in different locales has been pegged to Ready Reckoner rates. if TDR of 1,000 sq m is generated in Dahisar and sold in Malabar Hill, then the seller gets a sum based on ready reckoner rates in Malabar Hill, which will be way higher.

By Varun Singh, DNA India