Land-Based Instruments for Urban Infrastructure Development: The Experience of TDR in Mumbai

NICMAR Journal of Construction Management and Research, Vol XXIX, No. 1, pp 51-65, 2014 (Special issue on Urban Infrastructure Management)

22 Pages Posted: 12 Apr 2014 Last revised: 21 Aug 2015

Date Written: April 2, 2014

Abstract

Mumbai, one of the few largest cities in India, faces the challenges of continuing as economic powerhouse as well as maintaining the quality of life of its citizens. Civic infrastructure and its provision are important to support economic development as well as to enhance quality of life.

However, with much of the land already developed in the city and with an intense competition between various land uses, the costs associated with infrastructure development (both land acquisition and construction) are large. Although the MCGM prepared a development Master plan for the period of 1981-2005 introduced the concept of land reservations for various infrastructure services, the development of infrastructure did not progress much for the paucity of funds; moreover, the conventional method of land acquisition has met severe difficulties. An alternate way is to utilise land based instruments that offer incentives for land owners and/or developers to surrender/develop land for providing urban infrastructure. Transferable Development Rights (TDR) is one such instrument that can be used to achieve urban infrastructure development while utilizing the development potential as well as value of urban land. This paper shows how the MCGM has proposed to achieve the goal of developing civic amenities in Mumbai without burdening its exchequer. It also outlines some of the issues and the reforms required in the current TDR programme to make it more effective.

Keywords: Urban/Civic Infrastructure, Land-based Instruments, Development Reservations, Public Amenities, TDR

JEL Classification: H70, H71, H77, O18, R51, R00

Suggested Citation

Nallathiga, Ramakrishna, Land-Based Instruments for Urban Infrastructure Development: The Experience of TDR in Mumbai (April 2, 2014). NICMAR Journal of Construction Management and Research, Vol XXIX, No. 1, pp 51-65, 2014 (Special issue on Urban Infrastructure Management). Available at SSRN: https://ssrn.com/abstract=2423293 or http://dx.doi.org/10.2139/ssrn.2423293

Ramakrishna Nallathiga (Contact Author)

NICMAR ( email )

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Hyderabad, Andhra Pradesh 500033
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