The Bhubaneswar Development Authority (BDA) is planning to give improved FAR benefits for consolidation of plots by builders beyond town planning schemes (TPS). Another far advance, the regulatory body plans to levy a City Infrastructure Impact Fee (CIIF) for projects outside notified TPS regions and, which get the benefit of roads developed through TPS. These measures would boost land pooling for more plots and impose a charge for projects that benefit from planned roads.
This will be part of the draft BDA (Planning and Building Standards) Second Amendment Regulations 2026, published as an extra edition of the Odisha Gazette. The draft proposes a new Chapter IX comprising Regulations 77 to 79 of the BDA (Planning and Building Standards) Regulations, 2018.
Higher FAR Benefits for Voluntary Plot Consolidation
Under the proposed rules, owners of two or more plots, referred to as khatadars, can qualify for additional FAR by voluntarily combining their original plots into a single final plot within a town planning scheme. The incentive will be determined after applying a 40% deduction, with the additional FAR linked to the total area of the merged parcel.
The proposed eligibility limits are:
For space above 500 sq m and up to 1,000 sq m: 0.5 extra FAR.
Above 1,000 sq m: 1 additional FAR.
For a combined plot area of up to 1,000sq m, a further built up area of up to 500sq m is proposed. If the combined plot is more than 1,000sq m, this can be increased to the total plot area. So, for example, a combined parcel of 4,000sq m could be granted a further 4,000sq m of allowable built up area.
By allowing plots to be combined, BDA aims to make plot consolidation more appealing for individual landowners. It can also help lead to the creation of bigger development sites from the combination of small plots and to coordinated land use and infrastructure planning within town planning schemes.
FAR Incentive Certificate to Track Development Entitlements
An FAR Incentive Certificate (FIC) will be issued under the draft regulations to keep track of the extra development rights awarded to eligible owners. BDA will provide the certificate and the possession order for the amalgamated plot.
The record shall include the total additional FAR added, building permit and remaining entitlement. A record shall be kept to record what portion of the incentive has been used and what remains.
Validity period of FIC 10 years from notification of final town planning scheme. BDA may extend the validity period of FIC for further periods on the fulfillment of certain conditions and upon payment of certain charges. Any incentive, which remains unutilized beyond the validity period will lapse.
The draft further prescribes the order of usage of various additional FAR. If a building proposal is not covered under the basic maximum permissible FAR, then the entitlement as per FIC needs to be used first and only thereafter, the other availability provisions for additional FAR can be used.
Proposed rules specify that used FAR can't be "re-used". Under the new rules, additional FAR already used, beyond the allowance granted by an approved basic development plan (BDP), won't be returned to the available pool even if the building is later altered or demolished, or the approved BDP is surrendered.
The incentive will also not apply where the consolidated plot is subdivided into separate parcels or where the original consolidation is abandoned. This condition is designed to connect the additional benefit of development to a single consolidated property.
CIIF Proposed for Projects Using TPS Roads Outside Scheme Boundaries.
The draft also includes a new section for the City Infrastructure Impact Fee. The fee to be levied on developments that occur outside the notified town planning scheme boundary but, which use roads constructed as part of the TPS infrastructure.
This includes any development on land that has direct access to a TPS road. The scheme road and any intervening roads between the development and the scheme road, which are connected to the TPS network will be covered by the fee.
The proposed CIIF rates vary by development category:
Development category | Proposed fee |
Residential plotted development | ₹50 per sq m of built-up area |
Institutional projects | ₹60 per sq m of built-up area |
Apartment, commercial and industrial developments | ₹75 per sq m of built-up area |
For subdivisional layouts, the fee will be calculated at 1% of the plot's benchmark value multiplied by the applicable infrastructure factor of the town planning scheme.
The proposed charging mechanism is intended to cover developments that benefit from roads created through town planning schemes despite being located outside the notified scheme areas. It would extend infrastructure-related charges to eligible projects based on their access to the TPS road network.
Draft Rules Set Out Changes to Bhubaneswar's Development Setup.
The changes proposed have two effects. They might change the development of lands and permissions for construction in Bhubaneswar. The additional FAR for consolidated plots might incentivize owners of small plots to combine their land and the FAR Incentive Certificate will help codify the use of such rights.
The recommended City Infrastructure Impact Fee will also expand to develop outside TPS boundaries that will use scheme roads in a different fee structure. BDA can also impose impact fees on development that was approved for town planning infrastructure.
The draft regulations are yet to be finalised. How these will play out will depend upon the final draft and the procedure adopted before they are notified. Once notified, the amendments could influence decisions on amalgamation of plots, entitlements for construction and charges for infrastructure in a development plan for Bhubaneswar.
