21 Oct 2017 | 05:21am IST
Govt applies the brakes on TDR
Wants to give Real Estate industry time to recover from GST and RERA before rolling out Transfer of Development Rights policy; TDR now expected to be implemented after March
PANJIM: Against the backdrop of the real estate industry facing a setback due to the introduction of the Goods and Service Tax (GST) and Real Estate (Regulation and Development) Act, the BJP-led government State has decided to slow down on the implementation of transfer of development rights (TDR) policy in the State. The wait will probably be till April 2018, for TDR policy to conceptualise, which will be considered as the base for drafting of the Regional plan 2030.
TDR is aimed at protecting and conserving eco-sensitive zones, salt pans, mangroves, and even heritage homes. The concept paper proposing how to go ahead with the TDR scheme was submitted to Chief Minister Manohar Parrikar and Minister for Town and Country Planning Vijai Sardesai in August, however, it has been kept aside for the present.
Sardesai in August, had announced in the House that the TDR policy would be out within six months, however, the process is yet to start.
“Yes, we are going slow on the concept due to introduction of RERA and GST. The economy is hit hard by these two jolts. The implementation of TDR at this stage can have repeal effect on the entire economy,” Sardesai told Herald.
The Minister said the real estate industry is shaken up with GST and RERA. “I don’t want to shake up the industry with another regulatory mechanism. We want to give the industry some time before we conceptualise the new policy. Hence, we are going slow on the policy,” he stated.
RERA came into force from May 1 across the country, but in Goa, the rules are yet to be notified, though the registration of projects and agents has begun. GST was launched from July 1.
“By March GST and RERA effect will be felt and only after that we are going to go with TDR policy. There is no harm in waiting, we are going to give something good,” Sardesai said.
TDR is a concept to allow land or property owners to sell development rights to a builder or others, whereby they can construct higher buildings with extra floor area ratio in special cases. Heritage property owners cannot freely use their development right in conservation zones, and hence they can sell and earn money as compensation for the loss.
The Minister said the TDR policy will focus on conserving the environment, ecology along with promoting development. “TDR basically focuses on to curb instances of land conversions,” he said.
