CHENNAI: Tamil Nadu will see a massive vertical growth in real estate if the government introduces the revised Land Pooling Area Development Scheme (LPADS) for government projects across the state, and higher floor space index (FSI) for metro rail corridors in the upcoming budget session.
The LPADS scheme will come to the rescue of the government as it finds land acquisition under the new law is way too expensive. Land pooling is the process by which landowners consensually accept the government proposal for developing public infrastructure – such as roads, sewage lines and treatment plants, street lights, water supply, electricity lines, etc -- and amenities – such as schools, playgrounds, open spaces, etc –in their land through plot reconstitution. The portion used for the development of amenities is gifted to the government. Landowners get back a portion of developed land plots with much-appreciated market value.
Following the announcement in the 2012-13 budget session, TN Town and Country Planning Act, 1971, had been amended to launch the land pooling scheme to acquire land for housing and other infrastructure projects in 2018. It was followed by rules for the scheme in February 2020. The DMK government is revising the scheme for easy implementation.
Apart from this, everyone awaits a move by the government to provide higher FSI along the metro rail corridors for ensuring transit-oriented development (ToD). Chennai Metropolitan Development Authority (CMDA) is mulling over a maximum FSI of 6.5 in the ToD area along the Chennai Metro Rail and MRTS corridor.
The main reason behind revising FSI is to intensify commercial development along the transit lines or roads and achieve desirable transit densities for jobs and affordable housing in ToD zones, as per sources. It is learnt that an amendment to Tamil Nadu Combined Development and Building Rules (TNCDBR), 2019 is likely to take effect.
Similarly, the state may constitute a regional planning authority by bringing in an amendment to the 1971 Town and Country Planning Act. Regional planning envisages efficient land use, infrastructure, and growth of settlements for a larger area than just an individual city or town. It would focus on location, history, topography, transport, population, age-sex composition, literacy, workforce distribution, zones of development, industrial, and residential and commercial areas in the region.
However, what is irking the state is the delay in completing projects like Kilambakkam bus terminus, which was initially announced by the previous AIADMK regime. After failing to adhere to the earlier deadlines, the government has put in additional workforce to complete the project. Similarly, the work on the revised comprehensive mobility plan, and the third master plan is being undertaken.
The other major project is the expansion of the Chennai Metropolitan Area from 1,189 square kilometre to 5,904 sq km. Though the government order has been issued last year for including additional contiguous areas under CMA, nothing much has progressed since then.
The other major project which the real estate sector is looking keenly at is the proposed development of 50m strip of land and contiguous lands along Outer Ring Road (ORR). It is learnt that a high-level committee under the chairmanship of chief secretary was to be constituted to finalise the development proposals along the ORR.
Meanwhile, the Rs 100 crore Chennai Shoreline Renourishment and Revitalisation (CSRR) project by CMDA is yet to take off. Under the project, 30km of shoreline from Marina Beach to Kovalam will be tapped and turned into esplanades for promoting art, culture, and recreational facilities.