Chennai builders ask for TDR as concessional rates

CHENNAI: The developers’ body, Confederation of Real Estate Developers’ Association of India (Credai), on Wednesday called upon the state government to give a thrust to the affordable housing segment by handing over transferable development rights (TDR) available with the Tamil Nadu Slum Clearance Board at concessional rates to builders for using it on budget housing projects. The government sanctioned about Rs 1,000 crore worth of TDR (the system by which development rights of a property is transferred to another. It can be traded or sold) to Slum Clearance Board in recent years while clearing slums in the city.

But the Board has not been able to liquidate its TDR due to its exorbitant value (based on guideline value of the property). Credai, in a policy note on affordable housing submitted to the state government recently, suggested that by providing TNSCB’s TDR on discounted rates to developers, housing could be made more affordable for the economically weaker sections, said Credai Chennai president Suresh Krishn. Going by existing norms, use of TDR in any project would result in adding more floors to the building, which would in turn increase cost of construction. Only by increasing footprint of the building can one keep cost of construction low, he said.

To facilitate use of TDR in affordable housing projects, the government should also modify development regulations of the Chennai Metropolitan Development Authority and the Directorate of Town and Country Planning, he said. Credai was also keen on working on slum rehabilitation projects under the public-private partnership model, he said. Krishn also called for a single window system for project clearance. As of now, developers have to approach about 20 departments for nod for a a residential or commercial project. The market was showing signs of revival, said Krishn. “In the last one month, there were a lot of enquiries. A recent property exhibition in Dubai saw good response,” he said.

Credai Chennai has also come out a vision 2025 document, outlining its road map for the next 10 years.

Credits ET Realty

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