The Bhubaneswar Development Authority (BDA) has proposed additional floor area ratio (FAR) incentives for landowners who voluntarily merge their plots under town planning schemes (TPS). The proposed amendments also introduce a City Infrastructure Impact Fee (CIIF) for developments located outside town planning scheme boundaries but using roads developed under these schemes. The changes are intended to encourage plot amalgamation, regulate additional construction rights and generate funds for infrastructure development.
The proposals are included in the draft BDA (Planning and Building Standards) Second Amendment Regulations, 2026, published in an extraordinary issue of the Odisha Gazette. The draft regulations seek to replace Chapter IX, covering Regulations 77 to 79, of the existing BDA (Planning and Building Standards) Regulations, 2018.
Additional FAR Incentives for Merged Plots
Under the proposed amendments, two or more khatadars or plot owners who voluntarily merge their original plots into a single final plot under a town planning scheme will be eligible for additional FAR incentives. The incentive will be calculated after a 40% deduction, with the applicable FAR depending on the size of the amalgamated plot.
The proposed incentive structure includes:
- Plots measuring more than 500 sq m and up to 1,000 sq m: Eligible for an additional 0.5 FAR.
- Plots exceeding 1,000 sq m: Eligible for an additional 1 FAR.
Under this provision, a merged plot measuring up to 1,000 sq m can receive additional built-up area of up to 500 sq m. For larger plots, the additional built-up area will correspond to the plot area. For example, a merged plot measuring 4,000 sq m can qualify for an additional 4,000 sq m of built-up area.
The proposed incentive is expected to encourage landowners to combine smaller individual plots into larger parcels. Plot amalgamation can help facilitate planned development, improve land utilisation and support the provision of infrastructure through town planning schemes.
FAR Incentive Certificate to Regulate Additional Development Rights
To monitor and regulate the additional FAR granted to landowners, BDA has proposed introducing a FAR Incentive Certificate (FIC). The certificate will be issued along with the possession order and will document the additional FAR entitlement granted to the amalgamated plot.
The FIC will record the total FAR incentive, the portion already utilised and the balance available for future construction. This will provide a record of the additional development rights available to the landowner and help the authority monitor their utilisation.
According to the draft regulations, the certificate will remain valid for 10 years from the date of notification of the final town planning scheme. BDA may extend its validity subject to specified conditions and payment of applicable charges. Any unused FAR incentive will lapse after the validity period expires.
The draft also establishes a utilisation sequence for additional FAR. If a building proposal exceeds the permissible base FAR, the incentive recorded in the FIC must be utilised first. Other permissible methods of obtaining additional FAR can be considered only after the available incentive has been exhausted.
The proposed regulations also specify conditions under which the benefit cannot be reclaimed. Once the additional FAR has been recorded as utilised, it cannot be restored even if the building is subsequently altered, demolished or abandoned, or if the sanctioned building plan is surrendered.
Furthermore, the incentive will lapse if the amalgamated plot is subdivided or the amalgamation is cancelled. These provisions are intended to ensure that the additional development rights remain linked to the original plot amalgamation.
New City Infrastructure Impact Fee for Developments Outside TPS Areas
The draft amendment also proposes a City Infrastructure Impact Fee (CIIF) for developments located outside notified town planning scheme boundaries but dependent on roads developed under these schemes.
The fee will apply to projects that have direct access to a town planning scheme road. It will also cover developments that connect to the TPS road network through an intervening road linked to the scheme infrastructure.
The proposed fee structure varies according to the type of development.
| Development category | Proposed CIIF |
|---|---|
| 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 CIIF will be calculated at 1% of the benchmark value of the plot, multiplied by the applicable town planning scheme infrastructure factor.
The proposed fee is intended to account for the use of infrastructure created through town planning schemes by developments located beyond their boundaries. It establishes a separate charging mechanism for projects that benefit from access to the road network without being part of the original planning area.
Proposed Amendments to Influence Urban Development in Bhubaneswar
The proposed changes indicate BDA’s approach towards encouraging planned land development while establishing a mechanism to recover infrastructure-related costs from projects benefiting from town planning schemes.
The additional FAR incentive could encourage landowners to consolidate smaller plots, potentially making larger land parcels available for organised development. At the same time, the FAR Incentive Certificate is expected to provide a system for tracking the allocation and utilisation of additional development rights.
The proposed City Infrastructure Impact Fee will extend infrastructure-related charges to eligible developments outside town planning areas. This could help the authority account for the use of roads and other infrastructure created through public planning initiatives.
As the amendments are currently in the draft stage, their implementation will depend on the subsequent regulatory process. Once finalised, the provisions could influence plot amalgamation, building permissions and infrastructure-related charges across Bhubaneswar’s developing areas.
