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Centre Eases TOD Norms, Mandates 65% Affordable Housing Along Metro Corridors

  • by- Grihik
  • Apr 8, 2026
In a major push to affordable housing and transit-linked urban growth, the Centre has approved sweeping reforms to its Transit Oriented Development (TOD) policy along metro and rapid rail corridors.
Centre Eases TOD Norms, Mandates 65% Affordable Housing Along Metro Corridors

New Delhi, April 7: The Union Minister of Housing and Urban Affairs has announced significant changes to the TOD policy to promote affordable housing near metro corridors.

Key Changes

Reduced Plot Size Requirement

  • Earlier requirement: 1 hectare (10,000 sq m)

  • New requirement: 2,000 sq m

Removal of Land Use Restrictions

Mixed land use restrictions have been removed, meaning in TOD zones, alongside housing, businesses can also operate (with a cap on space).

Affordable Housing Mandate

65 per cent of total permissible FAR must be earmarked for residential use with housing units having built-up area of 100 sq m, thereby providing affordable housing along metro corridors.

Out of the remaining 35 per cent of FAR, 10 per cent is to be used for commercial and amenities for the housing area.

FAR in TOD Zones

  • Maximum FAR: Up to 500 permitted on plot sizes of 2,000 sq m and above with an 18-meter road

  • Meaning: On a 2,000 sq m plot, an entity can build floor space five times the plot size

TOD Zone Definition

A 500-metre area on both sides of any metro line will be known as "TOD Zones" where the scheme will be implemented along the transit corridor.

Fast-Track Approvals

A TOD committee has been constituted to give sanctions under the policy, with a mandate to clear any proposal within 60 days of receiving it.

TOD Charges

  • Simplified TOD charges: ₹10,000 per sq m

  • Amount collected under a ring-fenced escrow account for development in TOD Zones

  • Amount to be divided among agencies like Delhi Jal Board and MCD for projects in these areas

Connectivity

Union Minister Manohar Lal Khattar said the TOD policy will promote last-mile connectivity, with provisions to directly connect to metro stations through enhanced walkability, underground, and elevated pedestrian walkways.

Area Coverage

Chief Minister Rekha Gupta said: "Under the TOD policy, planned, high-density, and mixed-use development will be promoted in approximately 207 square kilometres of area within a 500-meter radius around Metro and RRTS corridors."