Town Planning Scheme

Concept of TP Scheme

Town Planning scheme means schemes may be prepared as per the MRTP Act, 1966 for areas which is in the course of development likely to be and for building purpose or already upon. This method was introduced through “Bombay Town Planning Act – 1915” later amended to “New Bombay Town Planning Act 1954”. Rapidly developed areas outside the limits of urban authorities were required to be developed in planned manner. The basic concept of town planning scheme is pooling together all the land under different ownership and distributing it in a properly reconstructed from other deducting the land required for the economically weaker section and road network. The process enables the local authority to develop land without fully acquiring it and gives the timing of the urban growth (50:50 ratio for redistribution, 50% land for government). This method is extensively used in Maharashtra and Gujarat. To achieve the objectives of the DP, TPS are prepared giving micro level planning for smaller areas of about 100 hectares. This areas are already under the pressure of the urban development. TPS are joint venture between the local authorities and the owner of plot who voluntarily agree to pool their land redistribute that land among them and share the development costs.

Objectives of TPS

  • Pooling of land
  • Reconstruction of plot boundaries
  • Provision for social and physical infrastructure
  • Redistribution of constructed plots amongst original owners
  • Automatic acquisition of land for public purposes
  • Recovery of betterment contribution to recover the cost of development

TPS Procedure

  • Deciding the town planning area
  • Declaration of the intention to prepare a TPS
  • Preparation of the base map
  • Preparation of the draft TPS
  • Arrangement of the owners meeting to explain Draft TPS
  • Invitation of the objection and suggestions of the draft TPS
  • Modification of the scheme
  • Submission of the TPS to the State Government
  • Appointment of Town Planning Officer (TPO) by the State Government
  • Serving of individual notices to affected persons
  • Hearing of the objections and suggestions
  • Submission of the preliminary TPS for sanctioning
  • Sanctioning of the preliminary  TPS with or without modification
  • TPO working out valuation, incremental contribution and informs the land owners.
  • Further invitation for the objections and suggestions
  • Decisions on the final scheme proposals
  • Information to each land owner
  • The land owner can appeal to the judge at district court
  • For the appeal against the valuation part , the land owner can approach the Board of appeal constituted by the state government
  • The Board of Appeal (BOA) gives its decisions after the hearing
  • TPO varies the final scheme as per the decision of the BOA and submits to the State government for its sanction.

Contents of the schemes

Content of draft scheme

  • Area ownership and tenure of each original plot
  • Particulars of the land allotted or reserved with details
  • Extent to which it is proposed to alter the boundaries of original plots
  • Estimate of the net cost of the scheme to be borne by appropriate authority.
  • Full description of all details of scheme infrastructure facilities
  • Any other prescribed particulars

Contents of the preliminary schemes

  • Verification of ownership and area as per revenue records and site measurements.
  • After consultation of owner town planning officer can reconstitute final plots and reserved plot and demark it.
  • Cost of scheme and submit to government for sanction
  • All maps of TPS like OP, FP, infrastructure map etc.

Contents of final scheme

  • Decide land value of O.P (undeveloped)
  • Decide land value of F.P. (undeveloped)
  • Determine amount to be payable or recoverable from owner

Original Plot

For preparation of scheme land parcels with common ownership are marked with original survey number/ plot number on map. All such plots are known as original plot.

Final Plot

In the layout plan taking out the area for roads, streets, public, semi public space. The remaining area is planned in reduced size better in shape, build ability and accessibility in regular plots known as final plot.

Semi final Plots

Semi final plots which is under process of hearing the objection and suggestions of considering final plot.

Relation with DP

To achieve the ultimate objectives of the development plan Town Planning scheme are prepared giving micro level planning for smaller areas of about 100 hectares that are already under pressure of urban development and need priority attention. TPS is tool to implement Development Plan.

Betterment Charge/ Incremental Contribution

  • Increment = FV – SFV
  • Incremental contribution = amount not exceeding 50% of increment.
  • No charges for reserved plot for public purpose
  • These charges would be in addition to the stamp duty charges
  • It is component of vale capture finance
  • It is shared cost of urban development rather than public infrastructure becoming a burden on government authorities alone
  • It levies on such plots who is beneficiary of price rise owning to any infrastructure development like metro SEZ etc.

Rational for charging incremental contribution

It is a shared cost of urban development rather than public infrastructure becoming a burden on government authority alone. The initial capital for any project is therefore easier to manage. Ministry of urban development has given its nod to betterment fee on lines of a value capture capture finance that would be rolled out in 2017-18 and aimed at rescue mobilization.