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Transit-oriented development to put Gurgaon on global map: JLL


The following is the report Rohan Sharma – Associate Director, Research & Real Estate Intelligence, JLL India.

For Gurgaon residents tired of getting stuck in traffic, things could change with introduction of the new Transit Oriented Development (TOD) Policy notified by the Haryana government. Originally announced in 2014, the policy underwent various changes based on feedback received from various stakeholders and corporate bodies before being ratified recently.

As part of the policy, the TOD zone of influence will extend till 800 metres on either side from the edge of the Right of Way (ROW) of the road along which the transit network is proposed or developed, irrespective of the alignment of the MRTS. Upto 500 metres has been deemed to be the ‘Intense TOD Zone’ and from 500 to 800 metres as the ‘Transition TOD Zone’.

These new norms are applicable on all new licenses falling under the TOD zones of influence irrespective of the respective development component being exhausted in the individual sectors. The norms have been suitably relaxed for even plotted projects to avail of such benefits for their group housing component with even partial coverage of a larger project in the TOD influence zone making it eligible to avail of the benefit I to the extent permissible, in any other part of its project.

Even older, completed projects can avail of such benefit in increase of floor area ratio (FAR) while conforming to the norms of ground coverage etc. In fact, older projects can even obtain additional minimum FAR of 0.5 and higher by purchasing in slabs of 0.25 subject to a maximum of 1.75 or 0.75 as per their location in Intense or Transition zone respectively.


While this notification allows higher FAR which should create more dwelling units and more office spaces in key transit corridors, thus likely bringing down cost for buyers/occupiers, the developers in such key areas have a windfall to reap by creating more built-up space and soaking up the incremental benefits. The pricing of the increased FAR with an additional cost head under Infrastructure Augmentation Charge though looks a little high and may not reflect ground realities in terms of actual pricing of built-up spaces in these areas.

What is a transit-oriented development?

Transit-oriented development (TOD) is a mixed-use residential and commercial area designed to maximize access to public transport and often incorporates features to encourage transit ridership. A TOD neighbourhood typically has a centre with a transit (train/ metro) station or stop and residential as well as commercial development around it.

Many cities around the world like San Francisco, Vancouver, Hong Kong, Melbourne, Paris, etc. have developed, and continue to write policies and strategic plans, with an aim to reduce automobile dependency and increase the use of public transit.

TOD as a planning tool is new to Indian cities and quality mass rapid transit systems are also relatively recent here. The primary goal is to move from an automobile-centric realm of urban living to a transit-centric one. The proportion of daily trips made by private vehicles in comparison to public transport show a city’s mode share of auto- versus transit-orientation. TOD interventions aim to significantly shift the mode share away from private motorized vehicles.


TOD in Haryana

The idea behind the policy is to allow for greater densification along transit corridors while also raising capital for further development of mass transit and transports services. Only group housing, mixed-use complexes and IT/ITeS are permitted usages in the TOD zones. The main beneficiaries will be the developers who have already developed projects or are holding lands in the vicinity of such transit corridors in Haryana.

The MRTS corridors identified are the ones along the current operational metro corridors running in to Gurgaon and Faridabad as well the rapid metro network. Also, the under-construction metro networks along the Northern and Southern peripheral Roads and the under-development rapid metro corridor will avail the benefits under this policy.

A comparison of the old and new FAR norms: