Major Changes to TDR Policy and Building Rules, New GO Issued by Govt

Major Changes to TDR Policy and Building Rules, New GO Issued by Govt
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Hyderabad: The Government of Telangana has issued G.O. Ms. No. 95 dated March 21, 2026, introducing significant amendments to the Telangana Building Rules, 2012, particularly focusing on the utilization of Transferable Development Rights (TDR). The move aims to enhance flexibility, rationalize regulations, and promote efficient urban development across the state.

Key Objective of the New G.O.

The government stated that the amendments are based on representations from stakeholders seeking simplification and better utilization of TDR provisions. The revised rules aim to streamline building permissions, especially in high-rise developments and urban areas.

Revised Definition of High-Rise Buildings

As per the new amendment, a high-rise building is now defined as any structure with a height of 21 meters or more. However, certain components such as chimneys, cooling towers, boiler rooms, lift machine rooms, water tanks, and architectural features are excluded from this calculation.

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TDR for Mid-Size Plots

For plots ranging between 750 sq.m to 2000 sq.m, buildings with heights between 18m to 21m will now be permitted only through TDR utilization, subject to compliance with parking and other regulatory norms.

Setback Relaxations Introduced

The government has introduced flexibility in setback rules through TDR:

  • In non-high-rise buildings, setback relaxation is allowed using TDR, provided minimum required setbacks are maintained in road widening cases.
  • In high-rise buildings, up to 10% relaxation in permissible setbacks is allowed through TDR, while maintaining a minimum 7-meter clearance on all sides.

Additional Floors Through TDR

For plots exceeding 2000 sq.m, additional floors can now be constructed using TDR:

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  • Up to 3 additional floors on plots abutting 40 ft roads
  • Up to 4 additional floors on plots abutting 60 ft roads
  • Up to 5 additional floors on plots abutting 80 ft roads
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These permissions are subject to compliance with fire safety, airport authority norms, and other applicable regulations.

New TDR Loading Norms for High-Rise Buildings

The government has also revised TDR loading requirements:

  • 3% of built-up area for floors above 10 floors (up to 20 floors)
  • 5% of built-up area for floors above 20 floors

Additionally, developers must submit:

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  • 50% of TDR at the time of building permission
  • Remaining 50% before issuance of Occupancy Certificate

Option for Master Plan Road Changes

In cases where Master Plan roads are modified, reduced, or deleted, applicants are given the option to:

  • Pay applicable development or conversion charges, or
  • Submit equivalent TDR in lieu of such charges

Impact on Real Estate and Urban Development

These amendments are expected to provide a major boost to real estate development in Telangana, especially in rapidly growing urban areas like Hyderabad. By allowing additional floors, flexible setbacks, and simplified TDR usage, the government aims to encourage vertical growth while ensuring compliance with safety and planning norms.

Industry experts believe the updated policy will increase land utilization efficiency, improve project feasibility, and attract more investments into the state’s real estate sector.

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The government has directed that these amendments be officially published in the Telangana Gazette and implemented with immediate effect.

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