News: Centre Overhauls TOD Policy: 65% FAR for Small Homes-07-04-2026
The Centre on April 7 approved wide-ranging changes to its Transit Oriented Development (TOD) policy for metro and rapid rail corridors, aimed at promoting affordable housing and transit-linked growth, PTI reported from New Delhi.
The new norms remove earlier land use restrictions, lower the minimum plot size, reserve 65 per cent of the total floor area ratio (FAR) for small residential units and set up a single window system for clearances. Officials said a 500-metre area on either side of a metro line will be designated a "TOD Zone".
DDA vice-chairman Sarvana Kumar said the minimum land needed for a residential development under the scheme has been cut from 1 hectare to 2000 square metres. With mixed land use curbs lifted, businesses can operate alongside housing in the zone, subject to a cap on space.
A maximum FAR of up to 500 is allowed on plots of 2,000 sqm and above on an 18-meter road, meaning floor space of five times the plot size can be built. Kumar said 65 per cent of permissible FAR is mandatorily earmarked for residential use with housing units of 100 sqm built-up area. Of the remaining 35 per cent, 10 per cent is to go to commercial space and amenities for the housing area, the policy states.
A TOD committee constituted by the Centre will grant sanctions and must clear any proposal within 60 days of receiving it.
Union Minister for Housing and Urban Affairs ML Khattar said the policy will promote last-mile connectivity, as it allows new underground and elevated pedestrian walkways linking TOD plots directly to metro stations.
Chief Minister Rekha Gupta said planned, high-density, mixed-use development will be promoted in approximately 207 square kilometres within a 500-meter radius of Metro and RRTS corridors.
Simplified TOD charges of Rs 10,000 per sqm will be collected in a ring-fenced escrow account for development in TOD Zones. Officials said the money will be shared among agencies such as the Delhi Jal Board and Municipal Corporation of Delhi for projects in these areas only.
