When you give part of your land free to GHMC or HMDA, for example for road widening, you can take Transferable Development Rights (TDR) instead of cash compensation. TDR is extra built-up area you can use yourself or sell.
How much TDR you get
| Road widening | 400% of the area surrendered |
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| Lake, water-body or nala buffer | 200% of the buffer area, if you develop it at your own cost |
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| Heritage area | 100% of the area |
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| Public parking complex | Equal to the parking area built |
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Under the Telangana Building Rules (G.O.Ms.No.168 of 7 April 2012, amended by G.O.Ms.No.330 of 28 December 2017). Work it out with the TDR calculator.
How TDR is used
- Build up to two extra floors above the normal limit, without extra setbacks, on your remaining land or another site in the same local body area (other rules still apply).
- Or sell it, in full or in parts. Issued certificates are listed on the GHMC TDR Bank ↗ and HMDA TDR ↗. The price is set by buyers and sellers.
- The land must be handed over free by a registered gift deed before TDR is issued. TDR is not given for unauthorised structures.
- An owner can choose compensation under the 2013 land acquisition law instead of TDR.
The 2026 high-rise rule
From January 2026 (G.O. 16, Municipal Administration Department), buildings above 10 floors in the Telangana Core Urban Region (GHMC up to the ORR) must use TDR equal to 10% of the built-up area from the 11th floor up. The aim is to raise demand for TDR so the government can acquire land for roads, lakes and the Musi project.
What it means for buyers
- High-rise developers now pay for TDR, which can show up in flat prices.
- If you own land on a road marked for widening, TDR may be worth more than you think: compare it with cash compensation before you decide.
Sources
- TLH Law, “An overview on Transferable Development Rights in Telangana and Andhra Pradesh”, 21 October 2020 (rules and ratios).
- NewsMeter, “Telangana amends building permission rules, makes TDR mandatory for high-rise constructions”, 17 January 2026.