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PURCHASABLE DEVELOPMENT RIGHTS

A POLICY FOR REGULATION OF FAR HOUSING DEPARTMENT GOVT. OF U.P

The Government of U.P. have framed a policy to increase Floor Area Ratio in the growing urban areas so as to reduce the increasing pressure of urbanisation on agricultural land. Since higher FAR would lead to higher densities with consequential pressure on existing infrastructure, it is obligatory for the Development Authorities to strengthen/augment the infrastructure commensurate with demand. Therefore, to raise financial resources for strengthening /augmenting infrastructure , the FAR in excess of the basic FAR provided in the Master Plan/Zonal Development Plan/Building Bye-Laws, has been made purchasable. The underlying objective of Purchasable Development Rights is that every urban location has an optimum FAR and it is the market forces that bring the true FAR potential of a given site. Such a policy would lead to the most beneficial (economically) density policy for a city as a whole. Thus, a flexible or free-market FAR with certain restrictions warranted by accessibility, building height and fire safety has been permitted on advance payment of proportionate land premium.
The English version of G.O. No. 1157/9-Aa-3-1999-2Aa.Ni./89 dated March 9, 1999 regarding determination of Purchasable FAR is reproduced in the following pages.

Determination of Purchasable FAR
Government of Uttar Pradesh
Avas Anubhag-3
No. 1157/9-Aa-3-1999-2Aa.Ni/89
Lucknow : Dated 9 March, 1999
Notification
Since continuous growth of population is resulting in growing urbanisation of land and horizontal expansion of cities is leading to depletion of agricultural land day by day, therefore, in order to conserve agricultural land and ensure optimum utilisation of urban land it is imperative to increase the limit of permissible construction / FAR. However, increase in FAR would lead to higher densities with consequential pressure on infrastructure. Therefore, to raise financial resources for strengthening/augmenting infrastructure, by permitting additional FAR and realising in lieu of that proportionate cost of land as fee, the permissible FAR provided in the Master Plan / Zonal Development Plan / Building Bye-Laws/GOs, needs to be redetrermined on purchasable basis for the towns given in the following list. And since through public notice dated 27th and 28th September,1998 read with Govt. Order No. 2946/9-AA-3-1998 Dated 17 September, 1998, objections and suggestions from the public were invited and subsequently after considering all the objections and suggestions received, by a committee, constituted by the Govt. for the purpose, the provisions were finalised.Therefore, in exercise of the powers conferred by Section-13, sub Section(3) of U.P. Urban Planning and Development Act, 1973, as required , by publishing Notification No. 2946(1)/9-AA-3-1998 Dated 17.9.1998 and subsequently under Section-13, Sub Section(4), the Governor is pleased to issue following directions to make necessary provisions for additional purchasable FAR over and above permissibile FAR in the Master Plans / Zonal Development Plans and Building Bye-Laws of the enlisted towns to the following extent:-i. Purchasable FAR shall be permissible for commercial, community/social and infrastructure facilities, (viz., medical facilities, educational institutions etc.), residential and other land uses over and above the basic FAR provided in the Master Plan/Zonal Development Plan/Building Bye-Laws to the extent of 20% in the built-up areas (as defined in the Master Plan) and 33% in the developing/ undeveloped areas of a city.ii. The provision of purchasable FAR shall not be applicable to unitary residential buildings and industrial land use. iii. In case of Group Housing, proportionate additional dwelling units shall be permissible on purchasable FAR. iv. Built-up Area and Developing/Undeveloped Areas shall be defined in the following manner:-
v. The extent of purchasable FAR in areas of cultural, historical and architectural importance and civil aviation zones which are to be delineated by the Development Authority Board or have been delineated in the Master Plan, shall be governed by the Master Plan regulations or other restrictions already enforced in this regard.vi. Purchasable FAR is purely an enabling provision; it can not be availed by any person as a matter of right. Keeping in view the traffic congestion, accessbility and level of linfrastructure facilities, distance from the protected monuments/ heritage areas of a particulara site or other planning considerations the Development Authority would identify from time to time such areas where purchasable FAR shall not be permissible.vii. The fee for purchasable FAR shall be calculated on the basis of current land price / rate according to the formula prescribed in Annexture-1.viii. The application for purchasable FAR shall be submitted alongwith application for building permit and the fee would be realised prior to plan approval.ix. 90% of the funds received from the sale of FAR shall be accredited to "Infrastructure Account" of the Development Authority.List of Development Areas where Master Plans are enforced
1. Kanpur 9. Gorakhpur 17. Haridwar-Rishkesh
2. Lucknow 10. Aligarh 18. Faizabad
3. Varanasi 11. Moradabad 19. Bulandshahar-Khurja
4. Agra 12. Saharanpur 20. Raibareli
5. Allahabad 13. Jhansi 21. Unnao-huklaganj
6. Meerut 14. Dehradoon 22. Banda
7. Bareilly 15. Mathura- Virndavan 23. Muzzaffarnagar
8. Ghaziabad 16.Firozabad- Shikohabad 24. Hapur-Pilkhuwa
sd/- Atul Kumar Gupta
Secretary
 
 
Annexure-1Formula for Calculation of Purchasable FARC = Le x Rc x P
Whereas,
C = Charge
Le= Proportionate requirement of land (in sq.mts.) for purchasable FAR
i.e., Fp x 100/FAR.
Fp= Additional floor area (in sq.mts.) permissible as per purchasable FAR
FAR=Floor Area Ratio permissible as per Master Plan/Building Bye-Laws.
Ec= Current Residential sector rate of land fixed by the Development Authority or Circle Rate of land fixed by the District Magistrate.
P= Purchasable Factor, whose value for different land uses shall be as under:
(i) Commercial 0.60
(ii) Community, Social Facilities and Infrastructure 0.15
(Viz. medical facilities, educational institutions etc)
(iii) Residential and others 0.40
Reasons for using current land price as basis for calculation of FAR fee:-a) FAR fee shall be determined by differential cost of land, depending upon its location.
b) The proportionate cost of land for different levels of land uses shall be reflected in the FAR fee.
c) Annual revisions of FAR fee shall not be required to take care of cost / price index.