Ahmedabad is embarking on a groundbreaking initiative that promises to transform its approach to urban development and environmental sustainability. In a strategic move aligned with its goal of becoming a net-zero city, the Ahmedabad Municipal Corporation (AMC) is preparing to monetise unused Floor Space Index (FSI) through a novel mechanism of selling Transferable Development Rights (TDR).
This innovative plan will involve auctioning off the underutilised FSI from plots designated for public infrastructure under town planning (TP) schemes. The FSI in question pertains to reserved areas earmarked for essential social infrastructure such as pumping stations, water tanks, and sewage treatment plants (STPs). By selling these rights, AMC aims to generate an estimated annual revenue of Rs 1,000 crore. The funds raised will be directed into a newly established climate adaptation financing fund, specifically designed to support Ahmedabad’s environmental projects.
A senior AMC official, who chose to remain anonymous, confirmed that a dedicated committee will oversee the valuation and auctioning process of these TDRs. This committee will be led by the municipal commissioner and will include the CEO of the Ahmedabad Urban Development Authority (AUDA) and the AMC’s standing committee chairman.
TDRs are intricately linked with FSI regulations. FSI defines the permissible construction volume on a particular plot, and by acquiring TDRs, developers can surpass these limits, thereby adding extra floors or expanding their developments. This approach not only optimises land use but also creates significant revenue streams for the AMC. The funds generated from this venture are poised to play a pivotal role in supporting critical environmental projects such as lake rejuvenation, urban forest development, and air pollution control. This financial boost is seen as crucial in advancing Ahmedabad’s ambitious plan to achieve net-zero carbon emissions by 2070.
Previously, AMC has successfully implemented similar TDR schemes, including those for slum rehabilitation and heritage conservation. The revenue from these projects has demonstrated the potential of TDRs to enhance urban infrastructure while also generating substantial financial returns. The new climate-focused TDR initiative represents a pioneering effort in India, leveraging real estate potential to fuel significant environmental improvements and achieve long-term sustainability goals. By tapping into this unused FSI potential, AMC is not only optimising land use but also positioning Ahmedabad at the forefront of urban environmental innovation.
