Telangana Government Relaxes TDR Norms in Key Policy Move

In a major push to boost the construction sector and reduce housing costs in the city, the Telangana government has taken a significant decision by relaxing norms related to Transferable Development Rights (TDR) . The Municipal Administration and Urban Development (MAUD) Department issued G.O. Ms. No. 95 on March 21, 2026 , introducing these revisions. The new rules will apply to projects extending up to the Outer Ring Road (ORR) .

Earlier, developers were required to hold a minimum of 10% TDR to construct additional floors. This requirement has now been reduced to 3%–5% , offering substantial relief to builders by lowering upfront investment burdens. Additionally, developers have been allowed to pay TDR charges in installments instead of a lump sum, easing cash flow constraints.

The government has also announced special incentives permitting up to five additional floors for construction projects on larger plots. Several amendments have been made to the 2012 building regulations , providing greater flexibility in construction limits.

Amid rising construction costs, industry bodies such as CREDAI have welcomed the move, stating that it will provide a significant boost to the real estate sector . Analysts believe these changes will encourage the use of TDR in place of cash, particularly for prestigious projects like the Musi Riverfront development .

Officials emphasised that while promoting vertical urban growth , the government remains committed to maintaining safety standards . They added that the decision was taken after considering representations from various stakeholders.

The primary objective, officials said, is to simplify building regulations , accelerate approval processes , and promote urban development without compromising safety. Overall, experts view these reforms as a key step towards revitalising Hyderabad’s construction sector and attracting fresh investments.