FSI and TDR Explained: Tools Every Developer Must Understand

In the world of urban development, two terms every developer must understand are FSI (Floor Space Index) and TDR (Transferable Development Rights). These are powerful planning tools, especially under Maharashtra’s UDCPR regulations, that help you make the most of your plot legally and profitably.

🔹 What is FSI?
FSI (also known as FAR – Floor Area Ratio) is the ratio between the total built-up area permitted on a plot and the area of the plot itself.

Formula:
FSI = Total Built-up Area / Plot Area

For example, a 1,000 sq.m plot with 1.5 FSI allows construction of 1,500 sq.m built-up area.

🔹 Types of FSI:

1. Basic FSI – The standard FSI allocated for the zone.

2. Premium FSI – Extra FSI purchased by paying premium fees.

3. Incentive FSI – Granted for special development like slum rehab, green buildings, etc.

🔹 What is TDR?
TDR allows developers to build more than the permissible FSI by acquiring rights from landowners who surrender their land for public use like roads, amenities, or reserved plots.

These rights are issued as certificates and can be applied on eligible plots in receiving zones as per UDCPR rules.

🔹 Using FSI and TDR Together
Say you own a 1,000 sq.m plot with:

• Base FSI: 1.1 → 1,100 sq.m

• TDR: 0.9 → 900 sq.m
  → Total FSI usable: 2.0 → Buildable area: 2,000 sq.m

This method helps increase project scope without violating building codes.

🔹 UDCPR Guidelines for Developers

• Combined FSI (Base + Premium + TDR) must stay within zone-specific limits.

• TDR must be used only in approved receiving zones.

• All additional FSI or TDR use must be approved through formal channels.

• Building components like ducts, balconies, and lift shafts must be calculated separately under FSI rules.

🛠️ Common Developer Mistakes

• Not verifying receiving zone status before purchasing TDR

• Misusing incentive or premium FSI without approval

• Confusing carpet area with built-up area

• Overbuilding beyond permissible limits

📌 Tips for Developers
✅ Hire certified architects and planners
✅ Use official FSI/TDR calculators
✅ Always refer to the latest UDCPR and local DCPRs
✅ Maintain legal records for every TDR transaction

📣 Final Thoughts
FSI and TDR are more than just numbers—they are tools to legally and strategically scale your projects. When used properly under the UDCPR framework, they open doors to higher profits, efficient land use, and smoother approvals.

Smart developers understand the value of using these tools the right way.