Transferable Development Rights

In February 2014, the state of Andhra Pradesh was bifurcated, leading to need for a new capital city in successor state of AP. As per the AP Reorganization Act 2014, a new greenfield capital was to be developed for the state of Andhra Pradesh. Hence, it was planned to construct a new greenfield capital "Amaravati" through LPS (Land Pooling Scheme) with active involvement of people.

The concept of land pooling was adopted where farmers/land owners (over and above 25,000 unique farmers) were appealed to pool their land (over and above 30,000 acres) to fulfil the land requirement to set up the people's capital in Amaravati. In return, Govt. of Andhra Pradesh promised to give them developed plots (residential and commercial) in a proportionate ratio of land pooled by them as per the predefined guidelines.

As per APCRDA Act - 2014, CHAPTER I (41) it is defined that the 'transferable development right' means a development right to transfer the potential of a plot designated for a public purpose in a plan, expressed in terms of total permissible built space calculated on the basis of floor space index or floor area ratio allowable for that plot, for utilization by the owner himself or by way of transfer by him to someone else from the present location to a specified area in the plan.