Thu Oct 09 15:11:00 UTC 2025: **Summary:**

The Telangana State government is considering revising its Transferable Development Rights (TDR) policy to make it more attractive to property owners who stand to lose land due to infrastructure projects like road widening and lake development. Chief Minister Revanth Reddy aims to make the TDR offer irresistible, potentially by increasing TDR values and making TDR acquisition mandatory for builders exceeding a certain floor count. The goal is to ease property acquisition, as current compensation under the Land Acquisition Act is insufficient in the face of rising real estate prices. Private land ownership within lake areas complicates development, leading to protests and hindering beautification efforts. HYDRAA hopes the revised TDR policy will address these obstacles.

**News Article:**

**Telangana Mulls Sweeping Changes to TDR Policy to Spur Infrastructure Development**

**HYDERABAD, October 9, 2025** – The Telangana State government is reportedly on the cusp of unveiling a revamped Transferable Development Rights (TDR) policy, aimed at accelerating crucial infrastructure projects across the state. Chief Minister A. Revanth Reddy is said to be personally driving the initiative, seeking to incentivize property owners who are impacted by projects such as road widening and lake development.

Sources within the government indicate that the revised policy could include significant increases in TDR values, making them a more appealing alternative to traditional compensation. Furthermore, the government is exploring the possibility of mandating TDR acquisition for builders seeking permits for high-rise construction exceeding a predetermined number of floors.

“The goal is to make the TDR offer irresistible,” an official familiar with the matter told The Hindu. “Increased demand for TDRs will translate to a reduced financial burden on the government for property acquisition, especially given the current real estate climate.”

The existing compensation framework under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, is widely considered inadequate, failing to reflect the true market value of urban properties. TDRs, which can be sold to builders or individuals seeking to construct beyond permitted limits, offer a potential solution.

However, the current TDR market has faced challenges, particularly concerning land ownership within lake areas. Hyderabad Disaster Response & Asset Protection Agency (HYDRAA) Chief A.V.Ranganath acknowledged that private land holdings within lakes are hindering development and beautification efforts.

“Private plot owners do create problems,” Ranganath stated, citing examples where development projects have been stalled due to land ownership disputes. He expressed optimism that the revised TDR policy would provide a viable mechanism to resolve these issues and facilitate much-needed infrastructure improvements across Telangana.

The proposed policy changes are expected to be finalized and announced in the coming weeks.

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