The Haryana Shahari Vikas Pradhikaran (HSVP) has initiated a process to assess the feasibility of allocating land along Gurugram’s upcoming metro corridor to Gurugram Metro Rail Limited (GMRL) for real estate development, as part of efforts to improve the project’s long-term financial viability.

The move also includes examining the sharing of Transit-Oriented Development (TOD) benefits arising from increased land values along the metro route, reflecting a broader push to fund urban transit projects through land value capture and commercial monetisation rather than fare revenues alone, according to a report by The Hindustan Times.

A letter in this regard was written in the last week of December by the chief administrator, HSVP, to the zonal office in Gurugram, following a request made by D Thara, chairperson, GMRL, in September last year.

According to DTCP officials, TOD benefits are quantified through land value capture and revenue-sharing mechanisms. Property prices within a defined TOD influence zone, typically 500 to 800 metres from metro stations, are assessed before and after metro notification or operation to estimate value appreciation. Additional buildable area permitted under TOD norms is monetised, while commercial revenue potential from retail, office space, parking, advertising and station-area footfall is evaluated through market assessments.

To be sure, GMRL can legitimately seek land or revenue linked to metro corridors, as urban metro projects in India are increasingly financed through value capture rather than fares alone. Haryana’s TOD policy allows higher FAR, mixed land use and commercial development near metro corridors, recognising the land value created by transit infrastructure. However, any land allocation or revenue sharing requires approvals from HSVP, planning authorities and the state government. GMRL cannot claim private land or automatic rights. Developers pay for additional FAR, with proceeds earmarked for metro funding.

The ownership of land transferred to GMRL for real estate development would be vested with the metro corporation, while FAR benefits will be shared through the department of town and country planning.

A letter written on behalf of the administrator, headquarters, HSVP, on December 18 said that the administrator, HSVP, Gurugram, should submit a detailed report with clear recommendations regarding allocation of land parcels along the metro corridor for property development and commercial utilisation. The letter also asked the chief town planner, HSVP, Panchkula, to examine the proposal and submit it for a decision to the competent authority, noting that the policy for TOD has already been framed by the planning wing.

“Administrator, HSVP, Gurugram is requested to provide a detailed report with clear recommendations. CTP, HSVP Panchkula, is requested to examine and submit the same for decision to the competent authority, as a policy of TOD has been framed by the planning wing,” the letter said.

According to GMRL, developing commercial projects along the metro alignment is crucial to ensure long-term financial sustainability of the project by creating multiple revenue streams.

In her letter written to HSVP and the Haryana government in September last year, D Thara said, “I am writing to seek the support of the Government of Haryana in strengthening the long-term financial sustainability of the Metro Corridor from Millennium City Centre to Cyber City, Gurugram, with a spur to Dwarka Expressway, being implemented by Gurugram Metro Rail Limited (GMRL). In view of this, I would like to request your kind support in allocating suitable land parcels along the metro corridor for property development and commercial utilisation.”

She added that sharing TOD benefits would support the project’s financial health while contributing to urban regeneration and increased economic activity along the corridor.