Executive Summary:
The document summarizes the Indian government's Transit Oriented Development (TOD) policy, initiated by the Ministry of Housing and Urban Affairs (MoHUA) in 2017 to promote sustainable urban growth through integration of land use planning with mass transit systems. It outlines the policy's objectives, incentives for states, and current implementation status, while also mentioning potential future incentives for states/UTs to adopt and implement TOD under the SSASCI scheme 2025-26. The government incentivizes states that have implemented the TOD policy through the Scheme for Special Assistance to States for Capital Investment (SSASCI).
Key Points / Main Content:
* **Policy Overview:**
* The National TOD Policy promotes compact urban growth by aligning land use with mass transit systems (Metro, BRTS).
* It encourages high-density, mixed-use development within 500-800m of transit stations.
* It promotes enhanced Floor Area Ratio (FAR), improved non-motorized transport, and multimodal connectivity.
* **Objectives:**
* Increase public transport usage.
* Reduce travel demand.
* Ensure inclusive housing for the Economically Weaker Section (EWS).
* Improve walkability and safety.
* Enable climate-friendly mobility.
* **Guiding Principles:**
* Compact development.
* Affordable housing integration.
* Mixed-land use.
* Private sector engagement through Public-Private Partnership (PPP) and land value capture.
* **Incentives under SSASCI:**
* Capital funding incentives for states/cities notifying TOD corridors.
* Modernization of building bye-laws by allowing more Ground Coverage, Floor Space Index (FSI), Densification and Inclusive zoning regulations to remove inefficiencies in existing regulatory framework.
* **Implementation Status:**
* Twenty-eight TOD corridors were notified in six States under SSASCI 2023-24 & 2024-25 Urban Planning Reforms.
* The Government of Rajasthan has not claimed any incentive under SSASCI TOD Component so far.
* **Future Incentives:**
* Extended TOD components under Urban Planning Reforms in SSASCI scheme 2025-26.
* Incentives for Creation of Urban Infrastructure Development Fund (UIDF) with a dedicated escrow account.
* Provisions for betterment levies and cess charges.
Impact Analysis:
* **State Governments/Union Territories:**
* *Impact:* Encouraged to adopt and implement TOD policies to promote sustainable urban development. Can avail financial incentives for notifying TOD corridors and modernizing building bye-laws.
* *Action Required:* Consider adopting and implementing TOD policies. Utilize available incentives under SSASCI, including TOD components and Urban Planning Reforms.
* **Urban Local Bodies (ULBs)/Urban Development Authorities:**
* *Impact:* Responsible for urban planning, including town planning, as per the 12th Schedule of the Constitution of India.
* *Action Required:* Align urban planning with TOD principles.
* **Citizens (especially EWS):**
* *Impact:* Potentially benefit from improved access to public transport, affordable housing, and enhanced walkability and safety.
* *Action Required:* No direct action required; benefit from policy implementation by state and local authorities.
* **Private Sector:**
* *Impact:* Opportunity for engagement through PPP and land value capture in TOD projects.
* *Action Required:* Explore potential investment and development opportunities in TOD projects.
Key Entities Referenced
Ministry of Housing and Urban Affairs: The Indian governmental ministry responsible for housing and urban development.
Transit Oriented Development TOD policy: A policy promoting sustainable urban growth by integrating land use planning with mass transit systems.
Constitution of India: The supreme law of India, which outlines the functions of Urban Local Bodies.
Urban Local Bodies ULBs: Local governmental bodies responsible for urban planning, as per the Constitution of India.
National Transit Oriented Development TOD Policy: A policy issued by the Ministry of Housing and Urban Affairs in 2017 to promote sustainable compact urban growth.
Scheme for Special Assistance to States for Capital Investment SSASCI: A scheme by the Government of India to incentivize states to implement TOD policies.
Rajasthan: A state in India where Abu Road (Sirohi district) is located; mentioned in the context of TOD policy implementation.
Urban Infrastructure Development Fund UIDF: A fund created to encourage StatesUnion Territories to adopt and implement TOD
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2049
TO BE ANSWERED ON JULY 31, 2025
TRANSIT-ORIENTED DEVELOPMENT PLAN
NO. 2049. SHRI DILIP SAIKIA:
SHRI BIDYUT BARAN MAHATO:
SHRI LUMBARAM CHOUDHARY:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to
state:
(a) the details and the salient features/objectives of the Transit-
Oriented Development (TOD) policy;
(b) the details of additional facilities likely to be provided by the
Government to the cities selected under the said policy;
(c) the targeted sections that are likely to be benefited under the said
policy;
(d) the name of cities across the country being selected under the said
policy;
(e) whether any criteria has been set by the Government for the
selection and if so, the details thereof,
(f) whether the Government is considering to connect Abu Road
located in Sirohi district of Rajasthan under the said policy and if so,
the details thereof; and
(g) whether the Government has estimated any kind of budget
expenditure for the said policy and if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) to (g): As per 12th Schedule of the Constitution of India, urban planning
including town planning is the function of Urban Local Bodies (ULBs)/
Urban Development Authorities. Government of India supplements the
efforts of the States through schematic interventions/ advisories. The
National Transit Oriented Development (TOD) Policy issued by Ministry of
Housing and Urban Affairs (MoHUA) in 2017, promotes sustainable
compact urban growth by aligning land use planning with mass transit
…2/--2-
systems like Metro and Bus Rapid Transit System (BRTS). It encourages
higher density, mixed-use development within 500–800 m of transit
stations, supported by enhanced Floor Area Ratio (FAR), improved non-
motorized transport, and multimodal connectivity, aiming to reduce
reliance on private vehicles.
The policy’s key goals are to increase public transport usage,
reduce travel demand, ensure inclusive housing for Economically Weaker
Section (EWS), improve walkability and safety, and enable climate-friendly
mobility. It is guided by principles, including compact development,
affordable housing integration, mixed-land use, and private sector
engagement through tools like Public-Private Partnership (PPP) and land
value capture.
MoHUA also promotes and incentivizes those states who have
implemented TOD policy through Scheme for Special Assistance to States
for Capital Investment (SSASCI). Under the TOD component of SSASCI,
the Government provides capital funding incentives to states and cities
for notifying TOD corridors, modernization of building bye laws by
allowing more Ground Coverage, Floor Space Index (FSI), Densification
and Inclusive zoning regulations to remove inefficiencies in existing
regulatory framework. Under SSASCI 2023-24 & 2024-25 (Urban Planning
Reforms), twenty-eight TOD corridors were notified in six States.
The Government of Rajasthan has not claimed any incentive under
SSASCI TOD Component so far.
To further encourage States/Union Territories to adopt and
implement TOD, the Government has extended the TOD components
under Urban Planning Reforms in SSASCI scheme 2025–26 which also
covers incentives for Creation of Urban Infrastructure Development Fund
(UIDF) with a dedicated escrow account and provisions for betterment
levies and cess charges.
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