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Affordable housing at heart of DDA’s new TOD policy notified by Centre


What Happened

  • The Ministry of Housing and Urban Affairs has notified the Transit Oriented Development (TOD) Policy for Delhi, amending the Master Plan for Delhi-2021 (MPD-2021).
  • The policy opens approximately 207 square kilometres of land within a 500-metre radius of transit stations — covering Delhi Metro, RRTS (Regional Rapid Transit System), railway stations, and High Speed Rail (HSR) terminals — for planned high-density mixed-use development.
  • A base Floor Area Ratio (FAR) of 400 will be permitted on payment of TOD charges; the maximum permissible FAR is capped at 500 — significantly higher than current norms in most Delhi zones.
  • Of the permissible floor area, 65% must be used for residential units, specifically targeting dwellings with built-up area of up to 100 sq. metres — the "affordable" segment.
  • A high-powered TOD Committee, chaired by the Vice-Chairman of the Delhi Development Authority (DDA), will approve proposals within a mandatory 60-day timeline through the MCD's Online Building Plan Sanction Portal (OBPS).

Static Topic Bridges

Transit Oriented Development (TOD) — Concept and Policy Rationale

Transit Oriented Development is an urban planning approach that concentrates high-density, mixed-use development within walkable distances (typically 500–800 metres) of public transit hubs. The core idea is to reduce private vehicle dependence by making transit stations the focal points of residential, commercial, and public amenity development. Cities like Hong Kong, Tokyo, Singapore, and Curitiba (Brazil) are global benchmarks for successful TOD implementation. In India, the National TOD Policy was issued by the Ministry of Housing and Urban Affairs in 2017 as a model framework for states and urban local bodies to adopt.

  • National TOD Policy: issued 2017, Ministry of Housing and Urban Affairs; advisory (not binding on states/UTs)
  • Core principle: development within 500–800 m of transit stations at higher density + mixed land use
  • FAR (Floor Area Ratio): ratio of total floor area of a building to the area of the plot; higher FAR = taller/denser buildings
  • Delhi TOD (2026): base FAR 400, maximum FAR 500 (vs. current MPD-2021 norms of 2–3.5 for most zones)
  • Coverage: 207 sq. km within 500 m of Metro, RRTS, railway stations, and HSR terminals
  • 65% of FAR must be residential; units capped at 100 sq. m (affordable housing orientation)

Connection to this news: The Delhi TOD notification operationalises the 2017 national framework with specific FAR norms, affordable housing mandates, and institutional approval mechanisms — making Delhi one of the first Indian cities to formally implement TOD at this scale.

Delhi Development Authority (DDA) — Role and Statutory Basis

DDA is a statutory body established under the Delhi Development Act, 1957. It is responsible for planning and urban development in Delhi, including preparation of the Master Plan for Delhi (MPD), land acquisition, housing construction, and sale. As the primary landowner and planner for Delhi, DDA's policies directly shape the city's built environment. The Vice-Chairman of DDA — a senior IAS officer — heads the authority and chairs the newly constituted TOD Committee under the 2026 policy.

  • DDA established under: Delhi Development Act, 1957
  • Nodal Ministry: Ministry of Housing and Urban Affairs
  • Master Plan for Delhi (MPD): statutory land use plan; current is MPD-2021 (with multiple amendments)
  • DDA functions: master planning, land pooling, housing scheme, green areas management
  • DDA Housing Schemes: have provided lakhs of flats across categories (EWS/LIG/MIG/HIG)
  • TOD Committee (2026): chaired by DDA Vice-Chairman; approvals within 60 days via MCD's OBPS portal

Connection to this news: DDA's notification is the implementing instrument for the TOD policy in Delhi — the Authority amends MPD-2021 to embed TOD FAR norms, affordable housing ratios, and institutional approval procedures.

Affordable Housing — National Context and Policy Framework

Affordable housing in India is typically defined for the purpose of government schemes as housing units up to 60 sq. metres carpet area in metropolitan cities (or up to ₹45 lakh for tax benefits under Section 80EEA). The Pradhan Mantri Awas Yojana – Urban (PMAY-U), launched in 2015 and extended to 2024 and then as PMAY 2.0, is the flagship scheme for urban affordable housing. India faces a structural housing shortage estimated at over 18.78 million units in urban areas (urban housing shortage estimate, PMAY-U baseline survey). The TOD policy complements PMAY-U by enabling higher density affordable supply near transit infrastructure without requiring large government land acquisition.

  • PMAY-U launched: June 25, 2015 (urban component); nodal ministry: Ministry of Housing and Urban Affairs
  • Urban housing shortage estimate: ~18.78 million units (predominantly EWS and LIG segments)
  • Affordable housing definition (RBI): unit ≤ 60 sq. m carpet area in Tier-1 cities; ≤ 90 sq. m in other cities; loan ≤ ₹35 lakh (Tier-1) / ₹25 lakh (others)
  • TOD policy affordable unit threshold: up to 100 sq. m built-up area
  • Housing & Urban Development Corporation (HUDCO): finances affordable housing projects
  • RRTS: India's semi-high-speed rail rapid transit system; first corridor Delhi–Meerut–Ghaziabad (Namo Bharat)

Connection to this news: The 65% residential mandate with 100 sq. m unit cap channels the high FAR enabled by TOD specifically toward affordable supply — addressing the gap between transit accessibility and housing affordability that most Indian cities face.

Key Facts & Data

  • Policy notified by: Ministry of Housing and Urban Affairs (amending MPD-2021)
  • Area covered: ~207 sq. km within 500 m of transit stations (Metro, RRTS, railways, HSR)
  • Base FAR permitted: 400 (on payment of TOD charges); maximum FAR: 500
  • Residential mandate: 65% of permissible FAR; unit size cap: 100 sq. m built-up area
  • TOD Committee: chaired by DDA Vice-Chairman; 60-day approval timeline
  • DDA statutory basis: Delhi Development Act, 1957
  • National TOD Policy (advisory): issued by MoHUA in 2017
  • PMAY-U (urban housing): launched June 2015, targets EWS/LIG/MIG housing
  • Urban housing shortage (baseline): ~18.78 million units
  • RRTS first corridor: Delhi–Meerut (Namo Bharat rapid rail)