DDA to Ring-Fence TOD Infrastructure Funds in Escrow Accounts Under Master Plan 2047
The Delhi Development Authority (DDA) has established a ring-fenced mechanism under the Master Plan for Delhi (MPD) 2047 to manage development charges through dedicated escrow accounts for Transit Oriented Development (TOD) projects, addressing long-standing infrastructure concerns in areas including Dwarka, Vasant Kunj, and Narela.
DDA Vice Chairperson N Saravana Kumar clarified that under the policy, infrastructure levies collected from developers must be used exclusively for targeted local utilities rather than being absorbed into standard municipal budgets. The mechanism was introduced following concerns from experts that relaxed development norms, including smaller plots for vertical growth and higher Floor Area Ratio (FAR), could overload civic services.
Funds deposited into the escrow accounts cannot be diverted for unrelated municipal expenses, Kumar said. The money will instead be spent directly on augmenting localized public services such as water supply, drainage networks, and road infrastructure in project areas.
Seven developers, representing both public and private entities, have already submitted applications seeking permissions for TOD projects. Kumar stated that these proposals will be placed before the TOD committee for evaluation. Once the committee grants approvals, the DDA will collect and deposit the specific infrastructure levies directly into the designated escrow account.
The policy comes after residents raised issues over deficits in basic services in areas developed under the previous Master Plan for Delhi 2021, where parts of Dwarka, Vasant Kunj, and Narela continue to experience inadequate water supply.
Lieutenant Governor TS Sandhu noted that MPD 2047 remains a work in progress aimed at improving the capital, adding that public discussions and suggestion drives will take place from September 1 onwards. Sandhu stated that valuable inputs from these meetings could be considered for inclusion in the master plan to resolve implementation barriers.
Kumar added that MPD 2047 has been designed to be implementation-centric. In land pooling zones as well as high-density and low-density areas, the DDA will approve road infrastructure within three months, clear layout plans, and collect charges. Necessary regulations for policies, particularly land pooling, are expected to be put in place within the next two to three months.
