HYDERABAD: The Telangana government has introduced a new policy for Transferable Development Rights (TDR) in protected zones around lakes, rivers, and drains.
Enacted through Government Order (G.O.) Ms. No. 16 dated January 16, 2026, the policy seeks to encourage voluntary land surrender to support the restoration and protection of key water bodies.
The amendment to the Telangana Building Rules, 2012, follows directives from the Supreme Court, High Courts, and the National Green Tribunal (NGT) to protect and restore water bodies by removing encroachments. The government stated that protecting these ecologically sensitive areas is a constitutional obligation but also recognises the hardship faced by landowners whose patta lands fall within prohibited Full Tank Level (FTL), Maximum Flood Level (MFL), and buffer zones, where construction is banned.
The new TDR policy introduces a slab-based compensation system. Land within the FTL of lakes or MFL of rivers qualifies for TDR equal to 200% of the surrendered land's built-up area. Buffer zone land receives 300% TDR, while land given for public conservation projects and nala widening is eligible for 400% TDR, matching road-widening compensation.
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Landowners who voluntarily surrender land may receive on-site development incentives, such as relaxed building setbacks or approval for additional floors on remaining property, subject to safety and height regulations.
To strengthen the TDR market, the government now requires that for all high-rise buildings above 10 floors, 10% of the built-up area above the 10th floor use TDR. If owners are unavailable or there are title disputes, eligible TDR will be recorded in a TDR Bank under the sanctioning authority and issued after disputes are resolved.
The new rules apply to lands within the Core Urban Region (CURE) and take effect for applications received on or after the GO's publication date.
The government noted that the previous uniform 200% TDR for both FTL and buffer zones was not appropriate, since no development is allowed in FTL areas while limited recreational use is permitted in buffer zones. The new graded structure offers additional regulatory incentives for voluntary land surrender.
"This is an effective mechanism to balance environmental protection and equity to landowners," the GO notes. The policy is expected to help agencies such as the Hyderabad Metropolitan Development Authority (HMDA) and the Greater Hyderabad Municipal Corporation (GHMC) acquire land for lake development, riverfront, and nala-widening projects without direct monetary compensation.
The order requires clearances from the Irrigation and Revenue departments before TDR issuance and government approval for bulk lands over one acre.