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DDA notifies permissible charges for redevelopment of Industrial Plots

By TIOL News Service

NEW DELHI, JULY 05, 2018: THE Delhi Development Authority (DDA) has notified applicable charges vide Notification dated July 03, 2018 for allowing permitted changed land-use in industrial plots, as ‘residential (gh)'/ ‘commercial'/‘hospital'.

Background:

The industrial areas were developed in 70's and over the years have deteriorated considerably in terms of physical infrastructure. Besides there have been changes in the nature of activities in some of the areas and there have also been demands for using part of the plot for non-industrial activities e.g., residential, commercial, pubic and Semi-public etc with due regard to the environmental considerations. Most of the industrial areas are located along the mass public transport corridor and there is also a need for optimizing the uses around these areas through the process of redevelopment. Redevelopment of such areas is based on certain parameters, spatial planning norms and environment related conditionalities regarding provisions and augmentation of essential infrastructure and services.

The Central Govt. by way of modifications in the Master Plan 2021 has already permitted residential use, on any existing industrial unit(s)/plots with a minimum area of 3000 sqm abutting road 24 mtr. ROW and above as a part of re-development, for optimal utilization of the land and to extend the benefit to the plot owners. On such plots, 1.5 times FAR of the permissible FAR of group housing is permitted as well as amalgamation of smaller industrial plots and sub-division of larger plots as prescribed for group housing in MPD-2021 and Unified Building Bye-Laws 2016. MPD-2021, also permits other non-industrial activities e.g., ‘Commercial' or ‘Hospital' on the industrial units /plots abutting roads of 24 mtr. ROW and above. These non-industrial activities on such plots are permitted subject to payment of conversion and other betterment levies as applicable. For implementation of this policy, DDA has now notified the applicable charges vide Notification dated July 03, 2018 which are as undermentioned:

Method used to derive the charges is very simple and rationalized.  It is based on circle rates of adjoining residential areas.

Additional FAR charges have also been kept at very reasonable level to ensure availability of housing at affordable prices.

The policy also provides construction of EWS flats which will provide respectable living for lower strata of society.

The charges have also been prescribed for use conversion from industrial to commercial and hospitals.  It will generate more employment avenues and better health facilities at reasonable cost.

A time period of 5 yrs has been allowed for completion of construction which will ensure timely delivery of flats to the users.

The charges collected will be utilized for augmentation of services, infrastructure and upgradation of the surroundings of that industrial area.

Use conversion charges for permitting ‘residential (GH)” use varies from Rs.14328 to Rs.24777 per sq. mtrs. and additional FAR charges have been fixed from Rs.3039 to Rs.7597 per sq. mtr. in various industrial areas.

Use conversion charges for permitting ‘commercial”/”hospital” use is 1.25 times of the rates of use conversion charges of ‘residential (GH)”.

Token processing fee/facilitation charges for amalgamation of plots shall be applicable as per notified rates varying from Rs.1.00 lakh to 4.00 lakhs depending upon the size of the plots to be amalgamated.

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