Real estate developers in Chennai have sought greater clarity regarding the implementation of the Transit-Oriented Development (TOD) policy, particularly on the eligibility criteria for concessional Premium Floor Space Index (FSI) charges for projects located near metro rail corridors.
According to the request, uncertainty exists over whether a residential or commercial project qualifies for the concession if only a portion of the project site falls within the prescribed 500-metre distance from a metro corridor, while the remaining land extends beyond that limit. Developers believe that this lack of clarity has led to delays in obtaining planning approvals and has slowed down several proposed projects.
Under the existing policy introduced in August 2022, developments situated within 500 metres of existing, under-construction, or proposed metro rail corridors are eligible for a 50% concession on Premium FSI charges. The objective of this policy is to encourage higher-density urban development around public transport corridors, reduce dependence on private vehicles, improve land utilization, and support sustainable city growth.
However, developers argue that the policy does not clearly specify whether the entire land parcel must lie within the 500-metre zone or whether partial coverage of the site is sufficient to qualify for the concession. They have requested that projects be considered eligible if any part of the site falls within the notified distance from the metro corridor.
Another concern raised is related to road frontage and site access. Some developments have their access road located outside the 500-metre limit, even though a significant portion of the land falls within the eligible zone. Developers have requested that such projects should not lose the benefit solely because their entrance or road frontage is outside the prescribed distance.
The industry has also requested that the clarification be made applicable to:
- Pending planning applications awaiting approval.
- Future development proposals.
- Revised planning applications where final approval has not yet been issued.
According to developers, issuing a uniform interpretation of the TOD guidelines would bring consistency to the approval process, reduce unnecessary delays, improve transparency, and encourage more investments in areas surrounding Chennai's expanding metro network.
If the policy is clarified, it is expected to accelerate residential and commercial developments along metro corridors while supporting the broader goal of creating well-connected, transit-oriented urban communities.
