“Owing to lack of demand and slump in the real-estate market, TDR’s lying unused. We are also going slow on the concept due to introduction of RERA and GST. The economy has been hit hard by the two factors after demonetization last year,” a minister told TOI.
The government introduced the new TDR scheme in March to make compensation more attractive for landowners who lose property to public infrastructure projects.
However, builders believe the new policy is unviable at a time when the market is sluggish. “TDR sales may not pick up till the real-estate scenario improves. But there is certainly a silver lining,” a senior BDA official said. The figures are not as bad as being portrayed. “When compared to Delhi and Mumbai, we are seeing better sales, thanks to early revival of the real-estate market,” the official added.
The other reason for the poor responsetoTDRischange in administration. Since 2006-07, BBMP has issued TDR worth two million square feet, and only less than half of them have been used. But since the new policy came into effect, BDA has been generating the certificates. “The slowdown in TDR sales is largely to do with initial stabilization problems sinceBDA has become theissuing agency in place of BBMP,” said Mahendra Jain, additional chief secretary, urban development department.
“New agencies have to put systems in place to issue TDR and revalidate the ones issued earlier,” Jain added.
